1. Otherwise, 0.96 is good to use as a cold/offline wallet on a 64-bit machine then?
Yes
2. Such procedure is even more complicated than it already is. I don't even know where to look for those config files to begin with let alone tinkering with them involving more command line arguments which I am trying to avoid in the first place. I'm just thinking that since Armory has a GUI, why not incorporate such a feature in it. There's already one for specifying an explicit Bitcoin Core data directory location in Settings, so why not for Armory's too? I thought that's what GUIs are for -- to make things easy and simple so that even gramps can do it without screwing up. It would be a foolproof method for regular Joes like me. Not everyone involved in cryptos is an astute techie; and I'm a fine example of that.
BTW, on a W7 x64 machine running 0.96 with explicit Armory data directory using a shortcut arg (--satoshi-datadir="D:\Bitcoin" --datadir="D:\Armory"), the "databases" folder, wallets, settings and log files are together in the "Armory" folder and ths setup has been working for a while now through several updates. So your explanation above about the "datadir" being separate from "blockchain and db folder" has confused the heck out of me even further.
https://btcarmory.com/docs/pathingI wrote a tutorial explaining what paths Armory uses and how to set them up in the config files. This is simpler than you are imagining it.
If it's too complicated to include such a feature in GUI (for us regular folks) such that it would jeopardize the existing working code and possibly break it, then forget I mentioned it. But thanks just the same for your time replying to my query.
GUI development is very time consuming, and GUI features such as pathing end up conflicting with the existing code which was never written with the intent to allow for modularity. On top of that, it is all in Python, which is particularly indisposed to the maintenance of expensive GUI code, so all in all, I put in the config setup cause it's the solution down the middle. When I have time and the appetite for it, I improve UX where I can. I do not often have that appetite.
TLDR: technical debt.
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