The "Insert" key does not seem to provide any output when using ATE with WYSE5G emulation. Could someone please help me figure out how to get the key to output similar to WYSE50 from Zterm.

It appears that the translation is missing from the wyse5?.pfk files released with ATE.

I've posted updated ones in http://www.microsabio.net/dist/51dev/ate/ which you can download into the %ATE%/dsk0/007000/ directory.

Or you could fix it in place, by opening a local session, logging to the 7,0 directory, and executing FIXTRN WYSE5G.PFK there. The proper translation for the INSERT key for Wyse50 should be ESC q. The WYSE5x terminal driver on the server side should convert that back to [206] (as seen in FIXTRN on the server), so that it can then be converted to whatever you want.

that seems to have done the trick. however, on my system, i did not already have a 007000/wyse5g.pfk file. is this 'new' file going to be included in the next ashell release?

Yes, it is definitely in the release package (at least now it is). Note that wyse5g.pfk and wyse50.pfk are identical, so if you have one, can just copy the other.