If what you want is:
if Xcode wouldn't act like it knows better than me and try reindenting lines of code that were already perfectly indented
then the "Tab key" indentation setting has nothing to do with what you want.
Instead, try unchecking "Automatically indent based on syntax" and Xcode will stop changing your indentation level.
Alternatively, uncheck {
and }
under "Automatic indent for:".
See also: Xcode Text Editing Preferences Help: Setting Source Editing and Indenting Preferences