One thing to realize is that you always get to decide on the granularity of your compositions. It is not necessary to build a deep hierarchy if you design the granularity of your interfaces correctly. Another great tool is higher order functional programming, such as passing components to components (via children). In this way, it is easy to describe generic interfaces and supply specific pieces of data without having the intermediary interfaces know or care about that data. Another approach, akin to using something like the state monad, is to use Reacts context feature, but this is rarely needed, in my experience.
Personally I make heavy use of higher order components, and I find I rarely exceed a component tree height of three.