ON/OFF vs OPEN/CLOSE & Contact item - Cannot get it to work

?? No idea what that means.

You can define a Group Item and give it members. You can define an aggregation function to give a Group a state from its members.
None of that is affected in any way by how you choose to display (or not) the group or any of its members.

Have you tried this? There was a reason I gave this example

Text item=myGroup label="click for more" {

You are not compelled to use widgets that happen to have names that match the name of the Item type (if any) involved.

If you have ideas about fundamental changes, OH3 is not yet set in stone and you will find many lively discussions about future paths e.g.