I also like to build locators from up to bottom like:
//div[contains(@class,'btn-group')][./button[contains(.,'Arcade Reader')]]/button[@name='settings']
It's pretty simple, as we just search btn-group with button[contains(.,'Arcade Reader')] and get it's button[@name='settings']
That's just another option to build xPath locators
What is the profit of searching wrapper element: you can return it by method (example in java) and just build selenium constructions like:
getGroupByName("Arcade Reader").find("button[name='settings']");
getGroupByName("Arcade Reader").find("button[name='delete']");
or even simplify more
getGroupButton("Arcade Reader", "delete").click();