Comment 4 for bug 1337172

Yes, the topology diagram is technically correct, but not very useful.

In the short term, the topology diagram could be enhanced so that clicking on a nested stack resource will load the topology diagram for the nested stack.

Longer term once blueprint https://github.com/openstack/heat-specs/blob/master/specs/explode-nested-resources.rst is implemented there could be an option in all of the tabs for a stack to display the exploded resources, not just the ones in the parent stack.