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Groups are much improved in Mahara 1.1, but there's still things we can do to make them even better. Some ideas:
Unfortunately omitted from Mahara 1.1 due to time constraints. Group blogs are nevertheless a good new feature to implement.
In order to do this, we first have to teach Mahara that the author of an artefact might not be the person whose account it's attached to (who is termed the "owner" of the artefact). Once we do this, Group blogs can be implemented by having blogs owned by a group, and having users in the group making posts to this group blog. The posts will be authored by the user, but "owned" by the group.
This idea presents group blogs as an actual blog which people contribute to. Another idea is to have people make posts in one of their own blogs, and somehow flag them as being displayable in a group. There may be other models too.
Group Homepage as a View
This would offer groups the ability to get fancy with how their homepage is displayed. We could provide the 'latest forum posts' listing as a blocktype. Groups could insert logos from their group files area, and group blogs too. Other blocktypes may suggest themselves to groups too.
Mass Adding/Inviting Users
Controlled access groups are useful as the students in them cannot leave, but there's no nice way to mass-add users to them. For this reason, people often turn to using "request membership" groups instead.
There is a feature request on the tracker regarding this item.