Thanks! Author here.

I think quite a few videogames have different levels. For example, I remember an old 1990s game called Wargasm where you could both be the general and the soldier. It was a lot of fun.

Most videogames don't go there, though, because it's more straightforward to use the game at a single "level". Even if they do have multiple levels, though, I don't think they ever go with more than 2 or 3. That would be just too confusing.

In text, though, this is natural. Even in non-interactive books, you have things like "Conan wants revenge > Conan is on his way to Stygia > Conan meets cobras > Conan is being attacked by the King Cobra > King Cobra's attack goes above Conan's head > Conan thrusts sword upward".