we limit the nesting to two
Two is very constraining. Even increasing the nesting limit to 3 or 4 would really help here.
I don’t need dynamic zones in the more atomic (deeper) components, I just want modular composition of components so we can separate concerns and efficiently compose pieces of our design system.
Flattening component hierarchies to achieve 2 levels requires repeating things across components and makes it harder to build and maintain your components and content.
Can you improve performance to allow at least slightly deeper component nesting?