To Jerrold Green1 : About "make sure your List Indent Level is set to 1." Yep, that's the default and that's how it is set.
To Walt K: Well, sure I selected the paragraph I want to change. That's part of the Help details I mentioned that I followed to the letter.
Here is what I found to be the failing of this whole process:
I am writing poetry. As you well know, traditional poetry has "stanzas" and there is a blank line between each stanza. In Microsoft Word, a "paragraph" is whatever you select. Word doesn't think for you. It doesn't matter if it is actually a stanza of poetry or even several paragraphs -- what you select is affected by your changes in style. That's is great, since I know what I want to add the style to and I can save time by adding it to several paragraphs at once.
The weirdness of Keynote is that it tries to out-think me. It wants to decide what is a paragraph, regardless of my selection. When I put a return at the end of a line (that's how you write poetry, guys), Keynote starts thinking and decides that surely means a new paragraph. Bad Keynote! Bad! Since Keynote also thinks the first line shouldn't be included in any paragraph (Bad Keynote! Bad!), I get interference rather than help from Keynote in trying to indent my paragraphs.
There are two possible solutions to this:
1) Apple might want to loosen up the paragraph decisions made by Keynote and let the paragraph indent apply to all the selection, even the first line. If we want to indent the first line even more, we can apply a first line indent. If not, the first line is not treated separately (duh!). If Apple can't see this type of accomodation, they should at least give us the word-processing equivalent to "block quotes" like those we can apply in HTML:
blahblah
2) I can use Word. It knows when to let the user be creative and control what is happening.
Remember this, Apple: Don't veer off the course of the standard bearer (Word) unless you think it is really wrong. If Word does something in a way that maximizes ease of use and creativity on the part of the user, stick with it. Don't go weird for the sake of "Thinking Different".