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I did not manage to find good solution.
For the time being this is what I do for creating Brand pages with related products and the Layered Navigation:
1) in the brand CMS page I use the following, as explained in my original post:
{{block type="catalog/product_list" template="catalog/product/list.phtml"}}
2) the links to the brand page have the attribute+value parameter into it. For instance:
http://www.site.com/brand-name?brand=123
What the does is to apply the filter “brand=123” into the product list call (1) that selects all the products in the site.
In fact, if you call http://www.site.com/brand-name without the parameter it will show ALL the products.
In order to implement (2) easily, I had an Admin Brand module developed so that it links a CMS page to a Brand, so it knows how to build the links to the Brand CMS pages etc… I hope it makes sense.
It does all I need well and use all the useful features of a CMS page, such as Meta Data. However, the links have a parameter in it, which is not ideal, but not a big issue either.
Alternatively there is a Magento Extension to help woth brands: http://www.magentocommerce.com/extension/1289/shop-by-brands
I am not sure whether it deals with the issue of displaying a full Layered Navigation. Here is an example, but it only shows the Categories: http://www.shearup.com/brands/avena/ It could be that this site only uses the categories in the Layered Navigation.
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