Default only has sense when you have checked "separate layout for each window". 
It is the default layout for newly appearing windows. If you have global layout 
(like I see you do), you start your session with the language first in the list 
(USA in your case), that's it.
Maybe it's a minor issue that you cannot move layouts up/down add/just remove 
them, but for me this bug seems fixed as such

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Cannot select default keyboard layout in gnome-keyboard-properties
https://bugs.launchpad.net/bugs/187969
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