Default values per layout is not possible. When you select templates for the layout, that actually means when a user goes into that layout and clicks Template Lookup button, only ONE template "Default CR - IT Individual" will be available to select. "Assigning" means allowing Categories/Templates/Statuses to be selected from within that Layout. Hope that makes sense.
Ah, got it...that does make sense. I misunderstood the meaning of that configuration. Thanks Joshua!
I created an idea for layout types to be able to apply template changes...please go vote it up!
Allow layout types to apply templates