In the early days of node, the ability to have tiny nested modules without opening the gates to dependency hell was such a profoundly new and exciting capability that the community didn't need any convincing to (over-)embrace it. As with microservices today or CORBA in the 90s, moving your design's complexity from its nodes to its edges is a powerful way to convince yourself that you've made it simpler.
You can read and/or listen to issacs talk about the actual history here: https://changelog.com/founderstalk/61
In the early days of node, the ability to have tiny nested modules without opening the gates to dependency hell was such a profoundly new and exciting capability that the community didn't need any convincing to (over-)embrace it. As with microservices today or CORBA in the 90s, moving your design's complexity from its nodes to its edges is a powerful way to convince yourself that you've made it simpler.