One thing I'm wondering is if it's possible to have a key binding to confirm the Prompt For Snippet action. I like to be keyboard driven so having to resort to clicking the Ok button with the mouse every time is less than ideal. Would something like a cmd+enter or something like that be a good default?
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And of course I didn't try fn+return which actually is the enter key. Little bit confusing, but maybe good to add to the help page?
The Return key works for me.
It does indeed work with fn+Return on a laptop. However, it does not work directly with an Enter key. I have just tested this on two external keyboards, one of them an Apple one. 
It will when the title field is in focus, but in the other text field it will act as "carriage return".
I also note that the Press a Button action cannot detect a button in a snippet prompt: "failed: Press Button “OK” failed to find button".
Works fine with the external keyboard's Enter key if the focus is not a multi-line input box.
Ctrl-Enter and Cmd-Enter seem to work whatever the current focus.
I'm guessing that "Press a button" can only see foreground apps, while the snippet prompt is a background-only KM Engine window.
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Yes, the same as the Return key:
They do indeed! Thank you.
I hope that @malkomalko will agree that your reply there is the solution and will mark it as such if so. Edit: oh, I just marked it and... well, I hope I am speaking for both of us! 