That only speaks to the topic of mesh. But no one anywhere stated that Nanite would replicate the animation components of Tessellation and Displacement. See, reviewing you find now that Nanite has nothing to do with material animation. Tessellation and Displacement, as material components, on the other hand could be animated, panned, turned on-off, flickered, warped, increased and decreased in intensity, scaled, etc, etc…all in a BP in real-time, on a sequenced timeline, and more.
If Tessellation and Displacement are deprecated by Nanite’s ability to render high poly meshes, then World Position Offset, Parallax Occlusion Materials, an Bump Offset are also deprecated by Nanite’s ability to render high poly meshes…but they weren’t removed?..
I point this out to those who want it back. Think broadly here - think of all the nodes in UE that are probably obsolete for the bulk of us, but they are still in engine. Now think of all the myriad of ways you could animate Displacement and Tessellation as a material component - you wouldn’t remove this feature-rich animation component if you didn’t have to. They likely had to axe for compatibility reasons.
It’s too bad for UE5 users- World Position Offset (limited to mesh poly), Parallax Occlusion Materials (not able to deform edges), an Bump Offset (2D only) do not come close to the level of 3D-edge deformation detail, via a texture map, made possible by Tessellation and Displacement. I recently tried them all, I can tell they were left in likely because they indeed do not have the engine cost that Tessellation and Displacement did. That engine stress with Tessellation and Displacement as animatable material editor components must have complicated UE5 too much, and with some aspects of them being deprecated by Nanite anyway, it was expedient to eliminate them.