Hi,
  because of the way the state machine must remain flexible, it
iteratively searches through the cases in the smaller (internal) while
loop to find a match case to move onto the next state. If it doesn't
make a match, it matches on default.
I'm going to use the word "classic" to signify the old layout (one
while loop, and lots of case statements).
Essentially, this is where, in a "classical" state machine (before the
toolkit) you would have had to return to a "what next" state, like
checking a menu or something like that, if you needed to decide
between more than one case.
e.g.
state 1 : can go to state 2 or 3 depending on something
state 2 : can go to state 4 or 1
state 3 : goes to state 1
So you have decision making areas, and work areas in each state.
Make better sense now?
To do the "classic" style it's almost impossible to programatically
distinguish between where the decision making would take place for the
next state in each state case, and where the actual work of each state
is. The layout would not be consistent.

Thanks

Sacha Emery
National Instruments (UK)

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