Parent - Child relationship changes?

Am I correct that now when you set an object as an non-contained child of another object, rather than
actually doing that, it makes it a child of the 'parent of the new parent'??

Maybe a stepped through example...

This is what I 'want':

Parent 1

Parent 2 (child of Parent 1 - contained)

Child 1 (child of Parent 2 - non contained - events go to Parent 2)

This is what I 'get':

Parent 1

Parent 2 (child of Parent 1 - contained)

Child 1  (child of Parent 1 - no events go to Parent 2)

I think I understand the 'reasoning' behind this (some sort of 'optimisation', but it creates a number of flaws

1. Events don't go to the parent you want them to go to
2. Z-order can be buggered up, Children should be above parents (or has been the way in the past)