Thanks Mike.  This worked.  It makes updating the template a bit trickier as you have to create a new artifact with the changes you want but otherwise this works.  It would be nice if the template was treated as a unique entity (not an artifact) you can edit/update.  Thanks again.

 That's an interesting thought, and it might not be a bad idea to submit this as an enhancement request. You can either do this through a jazz.net "Enhancement" work item (Filed Against: RRC -> Server) or by filing an RFE (Request for Enhancement) through Rational Support. I'm not sure how intense the RFE process is, but I think you have a better chance of getting stronger attention to your request through the Support route.

I think the point here is that the original artifact from which you created the template is not the template itself (hence why you are able to delete it while the template still exists). In other words, your artifact did not become a template, it was used to create a template. You're not actually seeing the template, but the artifact from which it was initially created.
To verify that, if after creating the template, you edited that artifact still shown in the view, and then created another artifact from the template, it would look as it did before, not as how you have changed it, because you changed an artifact, not the actual template.
So to change the template, you would, after making your changes, have to create the template again. Not much different than if you had deleted the original artifact, and thus had to create a new one from the template first, modify it and create the template from that.
Make sense?