They don't conflict, but it's still a bit confusing.

See the following:

[18:12:33] simonft@goldman /home/simonft/debian-packages/mediagoblin (0) 
> python ./setup.py install --root=debian/mediagoblin --skip-build --install-layout deb 
running install
running install_lib
warning: install_lib: 'build/lib.linux-x86_64-2.7' does not exist -- no Python modules to install

running install_egg_info
running egg_info
writing requirements to mediagoblin.egg-info/requires.txt
writing mediagoblin.egg-info/PKG-INFO
writing top-level names to mediagoblin.egg-info/top_level.txt
writing dependency_links to mediagoblin.egg-info/dependency_links.txt
writing entry points to mediagoblin.egg-info/entry_points.txt
reading manifest file 'mediagoblin.egg-info/SOURCES.txt'
reading manifest template 'MANIFEST.in'
warning: no files found matching '*.mo' under directory 'mediagoblin/i18n'
writing manifest file 'mediagoblin.egg-info/SOURCES.txt'
removing 'debian/mediagoblin/usr/lib/python2.7/dist-packages/mediagoblin-0.7.1.egg-info' (and everything under it)
Copying mediagoblin.egg-info to debian/mediagoblin/usr/lib/python2.7/dist-packages/mediagoblin-0.7.1.egg-info
running install_scripts
Installing pybabel script to debian/mediagoblin/usr/bin
Installing gmg script to debian/mediagoblin/usr/bin
[18:12:37] simonft@goldman /home/simonft/debian-packages/mediagoblin (0)                                                                                                                                                        
> cd debian/mediagoblin/
[18:12:42] simonft@goldman /home/simonft/debian-packages/mediagoblin/debian/mediagoblin (0)                                                                                                                                     
> find . -iname 'rdfa11.jsonld'
[18:12:45] simonft@goldman /home/simonft/debian-packages/mediagoblin/debian/mediagoblin (0)                                                                                                                                     
>

This causes gmg update to fail once it's installed.

root@box:~# gmg update
Traceback (most recent call last):
  File "/usr/bin/gmg", line 9, in <module>
    load_entry_point('mediagoblin==0.7.1', 'console_scripts', 'gmg')()
  File "/usr/lib/python2.7/dist-packages/mediagoblin/gmg_commands/__init__.py", line 108, in main_cli
    setup_func = import_component(command_struct['setup'])
  File "/usr/lib/python2.7/dist-packages/mediagoblin/tools/common.py", line 34, in import_component
    __import__(module_name)
  File "/usr/lib/python2.7/dist-packages/mediagoblin/gmg_commands/batchaddmedia.py", line 26, in <module>
    from mediagoblin.tools.metadata import compact_and_validate
  File "/usr/lib/python2.7/dist-packages/mediagoblin/tools/metadata.py", line 127, in <module>
    "mediagoblin", ["static", "metadata", "rdfa11.jsonld"])}
  File "/usr/lib/python2.7/dist-packages/mediagoblin/tools/metadata.py", line 105, in load_resource
    return file(filename).read()
IOError: [Errno 2] No such file or directory: '/usr/lib/python2.7/dist-packages/mediagoblin/static/metadata/rdfa11.jsonld'
root@box:~# 

Latest is 0.7.0

​https://pypi.python.org/pypi/mediagoblin/