Dan Ambramov has stated the reason hooks was created was to avoid nesting hell that was used to manage state. I may be misunderstanding him. I am not s React expert.
I believe "nesting hell" was in reference to obtuse state management architecture rather than DOM structure. It seems like a common misconception based off other comments on this post. Angular inserts a new custom element for every component so it's definitely a problem elsewhere, if not with React.