Silence "distutils/dist.py:267: UserWarning: Unknown distribution option: 'entry_points'"

apparently this is one of the Setuptools additions, removing for now.
Required reading: current comparison of packaging tools

...and where to go for docs, outside of standard library. I know stated aim at beginning of this branch was to stay within stdlib as long as possible, but it's beginning to look like that might be a very short time indeed.
re-org: move noisy unchanging stuff into sub-nodes
remove Manifest so getting clear distutils-only results

We're now at bare skeleton stage. The resulting package only as 4 files:

PKG-INFO
README.txt
setup.cfg
setup.py
keep temp folder around for inspection
add `packages`, not useful

On it's own, this add's `leo/__init__.py` and nothing else
Now have leo and leo.core, but that's it

...and finally understand what instigated Ville's os.walk section of "collect and filter files". Distutils package_dir does not recurse; each package (sub-folder with __init__) must be named. ...and the docs are very clear about that, I just misread the sentence the first few times, seeing what I wanted I guess; see end of section 2.1
https://docs.python.org/2/distutils/setupscript.html#listing-whole-packages