You have a a very valid point however, getting a circle/ellipse
selection to overlap an existing circle/ellipse is not very easy;
framing it with a rectangle selection and then getting the
circle/ellipse that fits the rectangle would often be easier.
In GIMP 2.8.10 on Windows, the ellipse select tool shows a rectangle
around the area, as well as the ellipse to be selected. It can also be
adjusted before using the selection, so you don't have to get it exactly
right first go.
Which version are you using? 2.8.10 is rather old now, but it would seem
a bit of a backwards step to have removed those features in newer versions.
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