That's an artifact of how the group usage is formatted (which isn't very robust).  It's not designed to handle nested groups.  

Mutually exclusive groups aren't meant to nest inside other mutually exclusive groups.  While it possible, it doesn't help you.  Effectively the arguments combined into one larger group.

See http://bugs.python.org/issue11588 for discussion on how nested groups might be implemented, and the difficulties in properly formatting their usage.

http://bugs.python.org/issue10984 has a more robust mutually exclusive group formatter, but even that is not designed for nesting.