I am sure I am missing something simple here. If I want to import a single premiere project sequence and it gives me the option of imporint only the sequence I want, why does it import the entire project? Shouldn't it just import the assests I need for that sequeence?
No, AE does not consolidate footage on import. This is a limitation in the whole process, as AE sees the project file, not the sequence as such. You can however easily remove unused footage with the respective commands from the file menu in AE.