by rare cases I meant the rare time I want to have a touch apply to multiple instances and still have it stop at a certain point.
I agree that 99% of the time you probably just want the top instance, but it only takes one extra condition to accomplish that (Pick top instance).
here is a sample based on the drop shadow file I made yesterday. I added my touch tracker and SpriteButtons family to show how I handle picking the top instance, using a shield to prevent clicks, multi-touch and a variety of other situations.
you will notice that if you arrange a window to partially cover the close button of another window that the close button only goes into the Hover state if the mouse is not over the higher window. And the window blocks the drag bar and any other buttons on windows below. Multi-touch is handled properly too, only one touch can select any individual button, you can hold down one button while using others, if one touch causes another button being touched to be destroyed it doesn't freak out, etc.
The sample also uses Font Awesome web font icons just for fun.