Wow, thank you for taking the time to answer this question so thoroughly!
I love how you accept a challenging question like this - a lot of people would have taken it as criticism.
I would submit though, that I do believe the real underlying strength of PW lies not in the query syntax, but in the data-model that supports it. You've sort of come up with a different kind of data-model, and I don't know what to call it, in some ways it's more like a "hierarchic document" database (not a real term) but it's not really relational - it just happens to be implemented using a relational database.
The document aspects of the data-model of course lends itself well to content management, which is really data-management or document-management, depending on how you look at it. While the hierarchic aspect lends itself extremely well to the hierarchic nature of URLs.
As Pete pointed out, it frees you from needing to know what the database structure is - again, I would attribute that quality to the data-model and not to the syntax.
As you said, no, there is no comparison between this and a template engine - that isn't what I was trying to suggest. What I'm suggesting is that the syntax itself is just syntax: it's a string of characters that can be interpreted.
The interesting thing about language, is not whether it uses parentheses or curly braces, single or double quotes - but rather the structure and instructions that those symbols express, and the functionality that they invoke.
A template engine has no real value, because all it really does, is invent different structure and symbols to express essentially the same things you can already express using existing native PHP syntax.
Okay, so PHP doesn't have built-in syntax for queries. It also doesn't have built-in syntax for MVC, event hooks, database access, document object models, or any number of other patterns and ideas - but (for the most part) people don't invent custom syntax for any of those, just APIs.
And maybe PHP syntax isn't as convenient for something as condensed as a query API.
But at the end of the day, isn't that the same selling point used by template engine peddlers?
Granted, query syntax in PHP is a more extreme case of the same thing - most query APIs (that I've seen) written in PHP are not pretty.
There are exceptions though - phinq for example manages to provide very familiar syntax by piggybacking on PHP itself for expressions, where other LINQ implementations for PHP (such as phplinq) usually resort to parsing strings. Of course, phinq has the luxury of just supporting native PHP data-structures like arrays - implementing efficient database-support would likely involve parsing and interpreting PHP, and then where are we going...
All things considered, I think custom query syntax is probably the best approach you could have chosen for the PW query engine.
The reason I brought it up in the first place, is that I strongly suspect that the day will come, when I want to do something that can't be done with the query engine.
When the day comes, I will return.
muhahahahhahaaaah!