How can I create a "master" switch with sub-switches all connected to the master switch? When then master switch is turned on, it allows power to go to all the sub-switch (when the sub-switches are on). When a sub-switch is turned off, its output cannot receive power.
Minecraft – How to create a “master” switch with redstone
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Updating answer with much more compact version
Old stuff
I hate answering my own question but I found the answer here: http://www.minecraftforum.net/viewtopic.php?f=35&t=60816 (I was searching google for a switch diagram when I found it via station selection search since it seems most people use it for minecart stations)
Here is the schematic for anyone interested in reproducing it. This particular one is great because it's only one button wide which makes it perfect for my goal. 
Here's another one that has the indicator lights on the same plane as the button but I haven't checked this one to see how it performs. 
I'm assuming by adjacent, you mean close enough that your character can reach both at once. Here is a diagram that will do it, basically a mutation of the basic circuit:
If you need a !Q, then just add an inverter to the top output. If for some reason, you absolutely need a narrow version, I'll try to create a more clear diagram of version C, which also has adjacent inputs:
I'm still working on figuring out how version E (your diagram) works, myself. :)
Update: Just found a much nicer version at RS Nor Latch by SH4D0WS1N (his screenshot, my diagram from it):
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Best Answer
It sounds like you want a lot of AND gates (sub-switches) with one common input (the master switch) in each gate.
Try constructing one AND gate for each sub-switch and connecting all the "A" inputs to a single lever and each "B" input to its own lever.
When connected properly, each AND gate will not be able to output power unless both the master switch is on and its corresponding sub-switch is on.
Be aware that redstone signals will only travel 15 blocks. A repeater can be used to extend this.