Hi Matthew,
So, you're saying that your text reference actually points to another link widget, so when that is replaced:
<$link to="foo">{{SomeTiddler!!reference}}</$link>
you end up with something like:
<$link to="foo">bar <$link to="baz">mumble frotz</$link> gronk</$link>
?
I would think you're not properly using your fields if that's your result,
e.g. like transcluding an entire tiddler in a link widget.
If TiddlyWiki ends up having you click the link in the link
then it's actually doing what it's supposed to.
The only way out would be if the $link widget had some attribute like:
<$link greedy="yes">if there is some click handler in here, it should never fire</$link>
But that sounds like a lot of work for something you may want to rethink in the first place.
What's wrong about using the $text widget in your case?