2 Items regarding Emails in the Summer'17 release under Lightning:

1. I see that there is now an 'Email' action available under cases, but when I add it to a page layout, it does not appear on the rendered page so I can't use it, so...
2. I have created an Action button under cases to Send Email and added it to the page layout, which works, but now I have created a new template (why, oh why can't we migrate existing templates?!?!) for use under lightning and added 2 merge fields, {!Case.CaseNumber} and {!Contact.FirstName}, to test things out. When I send the email from the case, neither of these fields actually get filed in, the email goes out with the merge fields as is.

Is this supposed to work in Summer'17 or do I need to delay migrating to LEX longer to get a working Service Console?