Nanite Performance is Not Better than Overdraw Focused LODs [TEST RESULTS]. Epic's Documentation is Dangering Optimization.

Because Nanite has an overhead, but once you get above that, it’s highly scalable. Dallas Drapeau explains it here: https://www.youtube.com/watch?v=Vzz8_O3PIUg
So, if you just do some rando tests with a handful of elements and polygons, it would behave badly. But if you start throwing at it literally millions (if not billions) of polygons, that’s where Nanite really shines.

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