This would be a great call-out to have in the TrueNAS documentation on datasets. I don’t remember seeing any cautions against this when reading up on things before jumping in. Checking it out now, the only mention of nesting (that I’m aware of) is just a 1-liner in the beginning that you can:
A TrueNAS dataset is a file system within a data storage pool. Datasets can contain files, directories, and child datasets, and have individual permissions or flags.
Generally I’d love more exploration of why you should (or not) make certain choices laid out in the documentation. Oftentimes it’s self-evident what something is. I’m reading the documentation to understand whether I should.
Thanks for the insights, @awalkerix!