Okay, now I am confused.
If what mrdna tested is really Tabbles’ behaviour then I can’t see why nesting tags is possible at all as it does not contribute to sorting your documents the way the nesting hierarchy indicates (see my previous complaint about what Evernote does)
The auto-tagging rule is not new, IIRC. I think my auto-rules behaved that way before, too (and it makes sense).
So, in detail, how does inheritance and nesting tags work?