Compounding em is total hell to keep track of in my head, even with a stylesheet open in front of me. I'm not much on top of front-end, but why aren't rem units just better in every way?
I'm sure grandparent knows that. The problem with cascadingly using em is that you cannot easily deduce the derived em-value on the nth level (e.g. header > nav > div > a, each with their own em-based font-size; good luck reasoning about a's em-value).
I like em for small exceptions. Likes <small> modifier to make that text smaller than its parent. Exactly the use case where you want a "relative" unit.
I thought this as well until I had to use a "widget library" that used REM to style.
If i set the HTML font-size to 16px (the default) the widgets are WAY too big, if it set it to 10px (what they use in their examples) it looks great but everything else is too small.
So I need to either re-style all the widgets (damn near impossible), or set all other elements to 1.6rem...
If they used em, i could just set the container to what I wanted and called it a day.
So em definitely has it's place, but I think the majority misuse it.