Salesforce CPQ: Contracted Pricing Consideration

Contracted Pricing within Salesforce CPQ is a convenient way of storing and applying immediately negotiated prices and discounts for individual accounts. We have written previously about Contracted Prices Considerations, and we must update our list with a new item.
According to the Salesforce documentation on Contracted Pricing, "During quote line list price calculation, Salesforce CPQ applies this discount to the product's price book entry. Salesforce CPQ ignores any block pricing on the product." Keywords to focus your attention on are "price book entry."
We tried to apply a Contracted Price (% discount) to a product that has the List Price set with the help of a Price Rule instead of a price book entry. What we noticed is that starting with the Special Price, everything else in the Price Waterfall was zeroed out.

This proves that Salesforce CPQ looks only at the price book entry prices when applying the Contracted Pricing logic and it's something to consider because List Price can be calculated with a price rule, or products can be priced based on block prices.

It would be more streamlined if the pricing actions in CPQ always start from the quote line's List Price once it is set, not the price book entry. A workaround for this would be to create a Pricing Lookup Table and set up another Price Rule (with an evaluation order later than the initial Price Rule) to ensure that "Contracted Prices" are indeed applied.