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I don't think you're missing anything, this sounds to me like something to submit to Tableau tech support. Your description took me a couple read throughs to understand, I suggest that in your write-up to them you get really explicit about which radio button clicks have which results. (For example, the sentence at the end of step 2).
Thanks Jonathan, it's always nice to know I'm not missing something. And good suggestion, I'll add some red boxes to the pix, and little better explanation. One thing I've recently noted is the behavior isn't consistent, which of course will drive both me and the Tableau engineers crazy!
Anyway, when I get a chance I'll open a case using their new (and greatly improved!) support form.