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The 'New Diagram' and 'New Element' wizard should be integrated with standard NB wizards.
"Namespace" drop-down should be removed from the wizards as well and new diagram/element should be inserted under the node level that was selected at the time of the wizard invocation, just like other wizards do.
Jyothi, do you already have an issue for this. This was entered awhile ago. Close out as duplicate if so.