An object can't be placed above another object? Huh?

Hi Edward,

I too find States frustrating, but actually the functionality you are describing I dont find bad.

I guess its there to help ensure that all our content is stacked correctly in a State (which remember is transparent by its nature)

As a solution to your issue, you can change the depth of each object inside a State by simply right clicking, then select bring Forward, or Send Back. Those all work perfectly inside States, and may help you achieve what you need without the frustration?