UX: Adding modular content

I am finding that the placement of the "Add Modular" button at the level of "Manage Pages" somewhat presents a less-than-clear conceptual model of what it's operation is. Initially I thought it would create a "New Page" of a modular type which then I would add Modular Content within the page itself, but that does not seem to be the case (if I understand things correctly).

There are various alternative approaches possible. One approach could be to only have the "Add Page" button at the level of "Manage Pages" and on that resulting dialog have an option to create a standard (Child) or Modular page. Another option could be to leave the "Add Page" dialog as is, but within a Page include the option to then add Modular Content with that same level, like how you can add Media to a Page.

I look forward to hearing others comments and thoughts on this issue.

Thanks,
Paul