I'm not sure but I think it's intentional. After all, the README says:
By default, the engine knows 2 variables:
ProjDir : The directory where the new project will be created.
ProjName : The name of the project.
Additional variables must be defined in a file called 'project.ini' in the directory of the project. This is a file in Windows INI format.
[... etc ...]
Thinking about it, it's quite logical: otherwise you would be recreating the same project in the same place all the time, destroying the previous one, if you accepted that default.
Granted, for small test projects it might be the desired behaviour but that would be taking a narrow view of what templates can do.