I would like Gregor Lingl's approval of turning turtle.py into a package.  It might make some things harder for novices, e.g. trackebacks and just browsing the source code.

Also many people don't expect to find any code in a file named __init__.py (and most of the time I agree with this).  But the alternative isn't so great either, assuming we'll want strict backwards compatibility (I wouldn't want the instructions in Gregor's or anyone's book to start failing because of this).  You can't rename turtle to turtle/turtle.py either, because then there'd be horrible confusion between turtle/ and turtle.py.

IOW, yes, flat still seems better than nested here!