Pulling from the home page makes sense. I think (off the top of my head with no actual "planning") I'd make it with the default admin only settings. Then I could quickly drag/drop to where I wanted a hidden page at and then edit the page (using the link on the admin module) to the exact settings I wanted.
I think I'd do it that way because I do, on occasion, have non-menu displayed items. On a couple sites I have a few root pages that aren't set to the same settings as the Home pages, ect. Basically - It'd give me some way (without having to remember which other pages have the same settings) to create a hidden page, without having to remember my already hidden pages, or having to go in and edit it.
This is just my 'off the cuff' opinion. I don't think I could REALLY say which way was more preferred by me until I used it as to create the pages for an entire site. Which, if I had it, I might re-do a couple site layouts on my test server just to see how it felt.
Speaking of having it - I agree that $29 is too high. For as awesome of a module as it is, I won't buy it for $29. I think $10 is about as high as I would go on this module. ($9.99 for the psychological effect) If it was $4.99 I'd buy it in an instant.
I say this because, well, it's what I feel I'd be willing to pay for it, for one. Other than that my thoughts on it are - It's not NEW functionality. If the existing Pages admin didn't exist and we had to do everything by going to the page settings and selecting the new parent tab then clicking save, ect - Yes, it would be worth $29. At that point I'd probably pay up to $50 for it, since it would be a significantly new feature and mass improvement over the Tab Settings way.
Since it is just an enhancement of an existing tool, which is annoying with the repeated clicks to move a page, it doesn't provide enough of an enhancment for me to pay $29. I say this because, I don't move pages that often; I don't create pages that often. My working day doesn't consist of dealing with site structure often enough to feel the module will be used enough to pay that much for it.
It's not an issue of it being too much money. I think $29 is a reasonable price, in general, for a module. If it's a module I think will be used a lot, or makes it so I don't have to code it myself (such as a paypal subscription module), I'll pay what I feel it is worth to the site I'm working on. This suggested price is just more than I am willing to pay for what this module provides above what already exists.
There are probably people who's main task is creating and altering site structure, this module is most likely easily worth $29. I'm not one of them, hence I feel it's too high.
This is all my thoughts and opinions, above I got into why I feel the way I do about the price, based on how I use DNN. I'm not, in anyway, trying to speak for anyone other than me. I just wanted to make that clear incase it drifted into sounding like I'm speaking for a group.