It sounds like you are talking about the LabVIEW adapter.
With the addition of the Flexible G Adapter in TestStand 3.0, the limitation of having a fixed connector pane no longer exists. This means that you can pass parameters into an arbitrary connector pane and use any VI directly with TestStand. With this addition, for passing parameters into tests, you can simply create the connector pane in LabVIEW without ever using the TestStand API.
You can still pass in the Sequence Context (by placing a Sequence Context control on your Front Panel, and linking it to the connector pane), but most applications do not require it. As for an Action step, there are many times where you want to use the Sequence Context to alter the state of TestStand in some way. Just like any other step type, the Sequence Context is an optional parameter.
All of these templates are defined with each step type. If you wish to have different templates for each step type (for example, a Pass/Fail step type which already has a Sequence Context defined), you can alter the template VIs used for each step type.
Hope this helps!
Allen P
NI