Can you post a simple project (with the time selection set) that shows the problem? I don't see anything wrong happening when running your action in a simple test project, so there is some specific state needed.

Bizarre, seems to work correctly, apart from the non-overlapping fades after the deleting.

While trying to reproduce it in a fresh project, i came across something else.
If you cut the time selection with the macro, the 4th track removes the clips incorrectly.
e.g. it removed too much.
empty item issue?

It might be related to incorrect selection over different tracks range.
you can verify by splitting all clips (select all, shift-S) then try to select clips within the time selection and you'll see that some clips outside the area will also be highlighted.

From the 'remove selected items' i expect the clips inside the region to be removed.
I do expect a new overlap from the clips before the region and the clips after the region.

With 'remove time selection' i want the time region to be removed, as it has no meaning anymore after removing the clips.

I noticed one thing with selecting all clips inside a time region.
If a clip within that region has a cross fade with a clip outside that region, it will also include the clips outside the region. This is not what one would expect. The result when deleting all clips within the region is that is will also remove the clips with an overlapping fade.

The picture 'selection-expected' shows the area you would expect to be removed.
But it turns out the overlapping clips on either side are also include in the selection that will be removed.

This is what happens when I step through your custom action. I don't see those little scraps being selected. Perhaps some other setting is affecting the behavior.

http://screencast.com/t/NzZiOTZiMmE

But you can see that in the clips at the right hand side of the selection are missing as well after removing the clips in the time area.
That should not happen.
If you reduce the time area to not include the fades, the neighboring clips will stay.

i noticed that when i removed the track containing the empty items, the removal of the clips within the time region will work correctly.

but then i do get the different fades.
track 1 has no fades.
track 2 + 3 do have fades but no overlapping.

attached some screenshots showing the trace back.

I'm sorry, I simply do not understand the bug report. Please be very specific and describe exactly which item does not end up where you expect. Remember that your action deletes the time selection twice, first when removing the items, then when removing the time selection.

[edit, bad information]

I get the same results doing the instructions manually or using the macro.
I'm using the latest OSX 3.14159 version.
Maybe things are different there.
There is bizarre things happening when selecting and splitting and deleting.
Sorry.

[edit, bad information]

Most of my posts above were incorrect, I've edited out the misleading information.

Resetting to "confirmed" and investigating.