It is more readable and better option — you have to parse it from the innermost function to the outermost just to understand what it's doing. With the pipe, it's more straightforward: you read it step by step — do this, then that, then the next — just like how you'd naturally read instructions.
With pipes you have linear sequence of data transformations. With nested function calls you have to start with innermost function and proceed all the way top the outermost layer.
The pipe syntax is much more readable than nested function calls when you need additional arguments for intermediate functions. With nested functions it becomes hard to see which functions those arguments belong to even if you try to help it with formatting.
They can be. It depends on the language, interpreter, compiler, and whether you do anything with those intermediate variables and the optimiser can get rid of them.
Readability is mostly matter of habit. One reads easily what he/she is used to read.