It looks like the Template Gallery in Google Sites is experiencing some technical difficulties. I got the screenshot below and for the past couple days copying and creating new sites has been difficult. So what's the deal?
It you try to create a new site from a template or copy a site (acts similar to a template) you might not get any options for template to use.
If you do see templates, it might take an infinite amount of time for the site to actually create or copy.
None at the moment. According to the Google Sites Help Forum, Top Contributors have submitted the issue to the Google Sites team.
Every time Google Sites get particularly buggy, there have been updates, upgrades, or changes to the Google Sites application. Could this bug be reasoned that way? Probably. We've long await a better way to manage the Template Gallery, which contains thousands of templates, some spammy, some poor quality, some excellent. It's a veritable grab-bag.
So let's wait and see. Stay tuned.