Good question Jim,
AFAIK my read on this is pretty much mainstream.
I take "orthogonal" to refer to unrelated, or non-concurrent, states. That is, if you complete all of the non-concurrent states the region will end.
In general, when a state ends it should either roll back or complete its work, as specified. Such specification may (optionally) provide for interruption or error signals. You should not have an 'abrupt' [for lack of a better word coming to mind] termination, in the sense that there is always a way out, even if it is a set of defaults. [For example, if you have provided an exit action this would be executed, if you provided for rollback on interruption, this would occur.]
The top-level phrase refers to those states that are enclosed by the entire element, not an 'inner' region. When you exit this 'compartment' you are exiting the element. The same 'rules' apply.
Now if we go back to your earlier note on concurrent states, the process is slightly different. These states are not orthogonal, they are directly related, simply by virtue of being concurrent. As you noted, you must be 'in' all concurrent states at once. My commentary pointed out that this means that if you exit any of these states you exit the set; it is an all or nothing proposition.
So the main difference here is that in the orthogonal case all the streams must compete to cause exit from the region, in the concurrent case completion of any state causes exit.
You can mix and match these cases, with a fair degree of versatility. There are some difficult situation though. Consider cases where (completion of) any of several subsets should case a state change, but not every subset would qualify. Or where several sets of streams should cause an exit if they all complete, but the individual streams of these sets - even in combination with other streams - are not alone sufficient, and the entire set of streams should not always be required. These can require some fancy footwork. There are ways to handle these cases well, though there are trade-offs that need to be considered (like some many other good thing). This whole subject lies outside our current scope though.
David