Where is all the specific assets imported from MarketoTemplates?

Assuming you're referring to Landing Pages?  If so, the majority of the elements of a landing page (that's based off of a Marketo template) is local to that landing page (not the template).  The template primarily consists of static header/footer elements, the underlying CSS, and overall layout of the page.  So it's expected that the actual template will look empty until you start adding elements to it (images, rich text, forms, etc.).

Yes you are correct, it is a landing page. Ok, that makes sense. I guess it is best to work from the layer in the Marketing Activites since all elements are displayed in preview and edit mode correct?

Generally, you would definitely be working on the specific instance of a landing page, whether in design studio or marketing activities. This is where you'd input your specific content and make your changes and you would see all the elements of the page as you stated. 

You would only really want to change your template in rarer circumstances -- e.g., brand changes or a page redesign etc. 

You may have to import the images and update the location URLs in the html.

Thank you all.

Josh-If I wanted to grab these images specifically from the Marketo templates site how do I gain access to the specific URL? When I try using the following link http://templates.marketo.com/
I get the following error message
Could not access specified URL