Ojan Vafai 6b07257fb6 Merge hitTestLayerByApplyingTransform into hitTestLayer.
This makes hitTestLayer a bit larger at the benefit of making
the code a bit easier to follow and getting rid of the confusing
recursive call to hitTestLayer and the appliedTransform bool.

R=abarth@chromium.org

Review URL: https://codereview.chromium.org/937023002
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