For templates, I kind of feel like interwiki namespaces would be a better fit then just totally shadowing. Someone could write {{wikipedia:Foo}} if they wanted to include an external template.
Also, how will things like {{SERVER}} et al, be rendered from a foreign template. What about extensions on the foreign wiki but not the local wiki. Do template invocations on the foreign template invoke the foreign version or the local equivalent? Are categories translcuded cross-wiki? Do foreign interwiki links that aren't local interwiki links render properly?etc