This seems to work well, although I'd be interested to hear other methods.
The only detail I'd like to add is to make sure the subpalette appears in the same place as the main group
Use case:
My always activated macro palette uses the numpad as hotkey triggers
I want to temporarily launch a subpalette that also uses those triggers, then go back to the main palette when that's done.
I could put an action at the end of each subpalette macro to reactivate the main palette, but a 'Pause Until' seemed like a simpler method to maintain, and accounts for situations where the palette was dismissed instead.
I know they're old, but they still work. You can use them as they are by installing the actions.
EDIT:
I'll take a stab at pulling the code out of the actions and making some standard macros for this.
Rob: Do you want to do this? To refresh your memory, both of these are JXA code, although the "Move" action is a compiled script with the extension "scpt" but it's still in JXA. And the way you wrote them makes it trivial to convert them to macros.
But since it's code from way back when, I thought maybe you'd like to convert them yourself, since it's unlikely they match your present coding style, as coding styles evolve over time.