Yes, it will only consider files with the .svg extension for inclusion in the menu.
I see there is a check box in Inkscape's save dialog to "automatically add file extension", do you have it checked?
The menu will update in real time in the next version, by listening to changes in the "guides" folder.
(Also, semi-hidden feature discussed in page 1 of this thread, you can create subdirectories to group the files to your liking.)
What would be really awesome is if there was a central place where users could publish and share these files, and improve them by collaboration. And, it would facilitate diagnostic for issues related to them too.
I find the manipulation of the objects sub optimal though. (handles in corners often get out of the picture, dragging work only if exactly on part of the object, etc.)
If any one has ideas to improve the manipulation, don't hesitate !
