Hi Tim,
CaseComplete doesn't allow extensions on extensions - so that would be just one level of alternative steps that's supported. What we recommend instead is to refactor the next level of extensions into a separate use case, and then reference that use case from the extension step. CaseComplete makes this pretty easy - just select the steps in the extension, then right click and select Move to new Use Case. More information can be found here:
http://casecomplete.zendesk.com/entries/263040-refactor-use-cases
In the new use case, you can then have extensions on those steps. You might make a note in the preconditions that the use case only occurs through extended behavior of the "parent" use case for clarity.
Please let me know if there's anything else you need.
Jason