We need an entity for archaeological context. A context can have different kind of scale, and may be arbitrarily defined or defined by some observed boundaries (changes in soil, cuts, or features). I'm very open to discussion on how this would relate to various CRM entities (E53.Place, E26.Physical_Feature, etc.).
I don't know if we need to differentiate (archaeological) "site" from "context". A "site" is a term used in convenience and is really hard to define formally, especially in a way that can see any agreement.