I don't think it is against GTD. There's a whole section of the GTD book about viewing things from different elevations with different levels of detail. So it is certainly not a stretch to have projects within projects.
This was kind of my point that GTD only mentions a single level of project because anything more would be hard to do in a paper system. Creators of electronic systems stick with it because that is what the book talks about.
The system I have found that implements projects within projects, the best is Smthngs. It really nails it (if only they had recurring tasks, email to task, and an android tablet optimized app I would use it).



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