I'm not sure I can think of a better explanation/examples than the gp. It essentially comes down to ambiguity between single element selector names (which are unprefixed in CSS - no dot or hash) and property keys (also plain identifiers).
The only similar nested braces form we have in current CSS is always @-prefixed. There's no unprefixed equivalent for parent blocks in current syntax (plus those blocks are currently limited to a single level which I guess mightt simplify things further given the prefixed selector is always at root level)
> I also don't see why a dramatic update like this couldn't also introduce / require a 'strict' style to be considered valid.
I think it could and I think the call for input is open to that as a possibility. The above comment is just referring to a fully compatible direct scss implementation of nesting.