Sorry if I'm late to the party, just wanted to chime in regarding what happens to the envelope when an automation item is created over it. I think the discussion showed that there are use cases when you would like to keep existing automation (essentially creating a copy of it inside AI), and there are cases when you would like to remove it (moving the points into the AI). This is similar to audio items - you may want to either copy or move them, depending on the context.
So I think that a setting would not be the best solution - mouse modifiers would.
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