Hi KM,
Why is this and will it ever be improved or is the product pretty much dead?
Not dead but "retired".
Read the home page of the web site:
http://www.ddisoftware.com/qimage/What would be the best way to use a background texture repeated image for the background?
Make an image of your background texture.
Add it to the queue at a size that fill the page. You could add it to the queue multiple times several pages or have different backgrounds for different pages.
Change to freehand mode, set the image size and drag an image to each page as required.
Use the Full Page Editor to fine tune the image position and "bring to front" as required.
Terry