The main selling point of Nanite is really just to reduce artist costs by avoiding manual LODs. But a high quality automatic LOD at build time may (read: almost certainly does) strike a much better balance for both current and near future hardware
You can't have a manual LOD for a cliff where half is near the player and should be high resolution, and half is further away and can be low resolution. Nanite's hierarchical LODs are a huge improvement for this.
You're also underestimating the amount of time artists have to spend making and tweaking LODs, and how big of an impact skipping that is.
It's a bad value proposition for end-users. Nanite is much slower for the same image quality that a bespoke solution would offer, which is evident with several AAA titles that choose to use in-house tech over UE.