>I was trying to envision its use as a substitution for a "traditional," application-independent firewall. Based on the above logic, however, I can see that this cannot work without also preventing detection of new applications -- not a good idea!
Well, compromise is compromise always.
Seems you do need a compromise, you need applications-independent fw and application detection at once. Right?
The intention is not clear in full. So what is the application detection is for, of the entire security police is applicationless?
Anyway the compromise exists.
Just do not create enabling rules in AllApps. Even typical applicationless approach is based on disabling particular network target and the entire policy is mostly enabling. Right?
If so, use (mostly) disabling rules in AllApps to retain the ability to detect new applications.
At least limit enabling AllApps rules with particular targets only.
If an ordinary applications starts, it would hardly ask for the particular target from the beginning.
Imagine you have A.B.C.D address enabled in AllApps.
It would be hard to believe an arbitrary new application started would ask
http://A.B.C.D or
ftp://A.B.C.D or
aProtocol://A.B.C.D right from the beginning. So the application will be detected.
Also WindowsFirewall (WF) is for you as well. If you need to disable a simple per-IP set of destinations, you could use WF alongside W7FC.
Simple rules can be managed with WF easily. Only complex (per-application,IP,port,etc) rules management is mush more handy with W7FC.
>You mentioned VPN (and in the documentation, gaming I think) as other potential applications, although my understanding of how this might work would require a specific example.
If you have the formal security policy in full, the sample is evident (more or less).
You have a set of application set with required permissions. Later you obtain a VPN to access to 10.0.0.0/8 or 192.168.0.0/16 or 172.16.0.0/12 subnetworks (the addresses are from RFC specifications for free sunbetwork IP addressing, so not random). After VPN connection, your computer joins the subnetwork and (typically) as safe in the subnetwork as in the local network. The initial per-application permissions are set before the VPN availability so the VPN- unaware. All the applications adjusting is laborious. So adding a or 192.168.0.0/16 (say so) to AllApps solves the problem at once.
Is it the sample you would like to have?