In the end, I needed to satisfy the case that the source element
matched and the parent of the source matches with the precedence going
first to the source element.

http://pastie.caboo.se/172487

Now, I'm sure this isn't the most beautiful way of going about things,
but it works, giving priority to matching against the source element
before checking parents.

In a way, allowing the source element to be a child opens a can of
worms: I'm willing to bet that someone out there (or me soon) is going
to need even more fine-grained precedence matching, wanting the
closest event to the source to fire ;)

Anywho, this is fun, thanks for listening.