Rendering into outlet inside a named outlet

1

Given these templates

<script type="text/x-handlebars">
  <h3>Application outlet:</h3>
  <div class="outlet">
    {{outlet}}
  <div>

  <h3><code>'base'</code> outlet:</h3>
  <div class="outlet base-outlet">
    {{outlet 'base'}}
  </div>
</script>

<script type="text/x-handlebars" data-template-name="index">
  <h1>I am the application index, I should be in the application outlet.</h1>
</script>

<script type="text/x-handlebars" data-template-name="foo">
  <p>I am foo, I have my own outlet here:</p>
  <h3>Foo Outlet:</h3>
  <div class="outlet foo-outlet">  
    {{outlet}}
  </div>
</script>

<script type="text/x-handlebars" data-template-name="foo/index">
  <p>I am foo index, I should be inside <code>#foo-outlet</code> (green border)</p>
</script>

And these routes:

App.Router.map(function() {
  this.resource('foo', function() {
    this.resource('bar');
  });
});

App.IndexRoute = Ember.Route.extend({ 
  afterModel: function() {
    this.transitionTo('foo.index');
  }
});

App.FooRoute = Ember.Route.extend({
  renderTemplate: function() {
    this.render({into: 'application', outlet: 'base'});
  }
});

I would expect the foo/index template to be rendered inside the {{outlet}} contained in the foo template, however it is rendered into the applications outlet, there is a live example here: JS Bin - Collaborative JavaScript Debugging

Note if I put a call to this._super() in renderTemplate I get the foo/index sort of in the right place, but the foo template is rendered twice, see JS Bin - Collaborative JavaScript Debugging