Hi Alli,
In your template segment, I changed $listProse to $Prose, and was able to display the information contained on the Prose tab of my use cases. I'm not sure why $Prose didn't work for you previously. I also surrounded the steps and extensions sections with simple $if/$endif statements to display them only when that information is present.
Try generating a report, and let me know what you think. If you're still unable to show the prose text in your report, shoot an email over to support@serlio.com and we'll take a deeper look at it with you.