I’m certain it means seeing connections of connections. Seeing 2 levels deep from the note you are querying.
I work in 3D applications that have network connections (Maya, Houdini, etc.), and in a node view, we often want to track an input 2 or 3 or more nodes down the chain. (Also, if you try and visualize all those connections, you can end up with a huge complex graph very quickly.)
Here is a screenshot of one of my simpler files in Autodesk Maya. Usually to find things via nodes, it is better to traverse one connection at a time, anyway. This kind of broad overview borders on useless. Unless you are scripting it, and following connections and filtering via specific node types.
Maya’s graph is dynamic. The arrangements of the node completely change depending on what you are trying to view. Houdini’s is a procedural graph, where the graph actually means something. If you had a node network that was more like an ordered, static mind-map, then the hierarchy becomes more useful, in my opinion. Here is a simple file in Houdini. The arrangement of the nodes doesn’t change unless you change it, so traversing down the connections makes a lot more sense. Notice, I also have embedded notes in the graph. And the orange section is a group, containing nodes.
Just some ideas. In a free-flowing dynamic network like Obsidian (as of now), seeing so many connections may be less useful than you think. But this is without knowing what you are trying to do or see exactly.