The answer is that the xdt:Locator and the xdt:Transform do not need to be on the same node. They just happen to be on the same node in every example I've ever seen.
You can do this:
<configuration xmlns:xdt="http://schemas.microsoft.com/XML-Document-Transform">
<a>
<b>
<c>
<d>
<e name="UpdateLanguageProfile" xdt:Locator="Match(name)">
<f xdt:Transform="Replace">
stuff here
</f>
</e>
</d>
</c>
</b>
</a>