At one point it used triangles for the large splats, and still compute shaders for the small ones due to quad overdraw. I'm not sure if the final version stuck with that or went all compute, but quad complexity is also why nanite does compute shaders for small triangles and traditional rasterization for the larger ones.
But it's a bit difficult to find the exact reason since profilers won't really tell you a concrete bottleneck when drawing vast amounts of tiny tris.
Media Molecule (LittleBigPlanet) spent over 8 years creating Dreams, which would never have happened without Sony's funding, but the tragedy was this brilliant high-end authoring tool being forced onto a games console interface and controller. Sadly, most of my peers in the high-end 2D, 3D, compositing and animation tools design community totally missed learning from Dreams. Even now, there are still innovative UX approaches in Dreams that could be adapted into tools like Blender.