At issue is the system response to the key. I expect the popup dialog to show icons for windows from only the current workspace but I am seeing icons for windows from all workspaces.
I fixed the problem by going into Compiz, enabling the Application Switcher, and then ... disabling the Application Switcher
In the process of enabling it Compiz asked if I wanted to disable the old conflicting actions (there were two "next" ones and two "previous" ones). I'm pretty sure disabling those is what fixes everything ... but again I don't know exactly what I did, so the only way I can suggest reproducing it is to enable then disable Application Switcher in Compiz.