The limit is not at the depth of nested subdirectories (you could have dozens of them, even more), but in file systems and their quotas.
Also, very long file paths are inconvenient (and may be slightly inefficient). Programmatically, a path to a file with a length of several hundred or even thousands of characters is possible; but the human brain cannot remember such long file paths.
Most file systems (on Linux) have a fixed limit on the number of inodes .
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