The "arrangement" relationship seems to be particularly discouraged on MB; from the classical style guide:
There must be at least two different recordings available. The recordings must be of different performances by two different (groups of) performers. You must be able to source that the both performances use the exact same arrangement. If in doubt, do not create a new work.
The relationship documentation is sparse, but it's the only other place I've found with guidelines on its use, and it says essentially the same thing (and even more strongly when it comes to pop music). Given that, I'd recommend that they should all just be linked to a single work -- without any "cover" or similar attribute -- and maybe given an "arranger" artist on the recording. Definitely support the hierarchical structure @mfmeulenbelt recommends for "based on", though, whichever model is implemented.