The product templates, at account.products.product.templates, contains the folder structures that need to be copied into the instance. See Templates in the sample product for an example of a product templates folder.
The main folder structure for the product should be at account.products.product.templates.install. See Product instance folder for standards on the structure of the main folder.
The templates folder may contain additional folder structures that are brought in using the Package Instantiator type. This provides a method of encapsulating a structure as a node type, and recreating the structure by instantiating the node type.
The template folder must not be frozen, and should always be in draft. The product install node and package instantiators, which may be versioned, can be used to recreate previous versions of the template structures.
Both the product install process and the package instantiators allow the definition of scripts to be run when the structure is instantiated. Where possible, use the init trigger method to instantiate structures, and only use the post install or instantiator scripts for processing that cannot reasonably be achieved using an init trigger. Use an Initialization List to control the order in which initialization is run.