This is how I understand it as well. Currently, you can think about it like those old cartoons where parts of the background that were to be interacted with wer

This is how I understand it as well. Currently, you can think about it like those old cartoons where parts of the background that were to be interacted with were a slightly different color to help the animators know what they had to work with. Since we are so early in the stages of Nanite tech, I expect UE6 will tout some sort of deferred and active Nanite rendering to allow for handoff for deformation.