With a site template, once you add template pages, the original template content is overridden by the page. The higher level template item will not be visible, only the lower level pages created from the template.
The pages created will not be add to the navigation, it is not dynamic, you will need to add the pages to the navigation manually.
When a page is created from the template, you can access that pages contents through a querystring.
lets say as an example that I set the directors.php page to be a template. I can get to the individual pages using the page name as a querystring and passing a number for the page: