Smart group with Display Results As Related Contacts doesn't always include the related contacts

The Display Results As feature for making smart groups of related contacts does not seem to work.

I believe that this is a duplicate of issue CRM-7948, which was supposedly fixed as of 3.4.1, but I can still reproduce it with using my 3.4.4 installation.

SOFTWARE VERSIONS

Platform: CiviCRM 3.4.4, Drupal 6.20
(Note: Recently upgraded directly from CiviCRM 3.3.5 to 3.4.4)

ASSUMPTIONS

1. There are individual contacts in the database.
2. Some of the contacts have a Parent/Child Of relationship.
3. All of the Child contacts have been tagged with tag T.
4. Create a smart group (marked as a Mailing List) named G1 of individual contacts tagged with tag T.
5. Create a smart group (marked as a Mailing List) named G2 of individual contacts with a Parent Of relationship to contacts in group G1.

OBSERVATIONS (4)

Observation 1:
Create a new mailing and select groups G1 and G2 as recipients.

Expected Result 1:
All of the members of groups G1 and G2 receive the mailing.

Actual Result 1:
Only members of group G1 receive the mailing.

Observation 2:
Search > Find Contacts > In Group G2

Expected Result 2:
All contacts with a Parent Of relationship to members of group G1 are shown

Actual Result 2:
Only members of group G1 are shown

Observation 3:
Contacts > Manage Groups > Group G2 > Contacts

Expected Result:
All contacts with a Parent Of relationship to members of group G1 are shown

Actual Result 2:
Only members of group G1 are shown

Observation 4:
Contacts > Manage Groups > Group G2 > Contacts > Edit Smart Group Search Criteria

Expected Result:
All contacts with a Parent Of relationship to members of group G1 are shown

Actual Result:
(Correct behavior!) All contacts with a Parent Of relationship to members of group G1 are shown