Yes, for overlapping ranges, you can go up a header level for the encompassing range if one range was a subset of the other. It will break down at some point with lots of overlapping ranges.
For me, this will cover my general range cases and be good enough until someone develops something more robust.
I am sure someone is working on a plugin for the kit that will handle a string of verse references, much like verse searching in most Bible software.
All workarounds have trade-offs. Things don’t always have to be perfect to be helpful. Obsidian and the kit give us lots of options and flexibility.