I tested this on Obsidian and reading view produces blank <h1> and two <p>. In live preview one <h1> is produced without inline formatting. Obviously your trick can be used to achieve markdown in html elements (in reading view):
<hello><h1>
[*Italic Link*](https://example.com)
[*Another Italic Link*](https://example.com)
</h1>
Do you have any practical use for it? For example markdown tables in Obsidian already support nested markdown.