Proper way to make HTML nested list?

Question

The W3 docs have a nested list example prefixed by DEPRECATED EXAMPLE:, but they never corrected it with a non-deprecated example, nor explained exactly what is

Answer 1

What's not mentioned here is that option 1 allows you arbitrarily deep nesting of lists.

This shouldn't matter if you control the content/css, but if you're making a rich text editor it comes in handy.

For example, gmail, inbox, and evernote all allow creating lists like this:

With option 2 you cannot due that (you'll have an extra list item), with option 1, you can.