updated merge logic.

Ignore-this: db96b4405ffc49453d634f51c07ab650

Also updated app editor to merge data.

darcs-hash:20140923140615-c21fe-583cfc8ae792713212172fe500761c4137577299
changed how merge happends during init in the app editor

Ignore-this: db39337ec1331c4cc8e698cd34aee543

To make initial init more efficient

darcs-hash:20140923142202-c21fe-50c5b079f68f27823d6c5a87bc070a538064555d