I don't think one can avoid the need for nested With altogether - I find it a very common case to need declared variables use previously declared variables.
Since I once wrote the function (actually macro) which automates nesting With, and generates nested With at run-time, this is a good opportunity to (re)post it as an answer to an exact question which it actually addresses. I will partly borrow the discussion from this answer.
Implementation
Here is the code for it (with added local variable highlighting):
ClearAll[LetL];
SetAttributes[LetL, HoldAll];
SyntaxInformation[LetL] = {
"ArgumentsPattern" -> {_, _},
"LocalVariables" -> {"Solve", {1, Infinity}}
};
LetL /: Verbatim[SetDelayed][lhs_, rhs : HoldPattern[LetL[{__}, _]]] :=
Block[{With}, Attributes[With] = {HoldAll};
lhs := Evaluate[rhs]];
LetL[{}, expr_] := expr;
LetL[{head_}, expr_] := With[{head}, expr];
LetL[{head_, tail__}, expr_] :=
Block[{With}, Attributes[With] = {HoldAll};
With[{head}, Evaluate[LetL[{tail}, expr]]]];
What it does is to first expand into a nested With, and only then allow the expanded construct to evaluate. It also has a special behavior when used on the r.h.s. of functions definitions performed with SetDelayed.
I find this macro interesting for many reasons, in particular because it uses a number of interesting techniques together to achieve its goals (UpValues, Block trick, recursion, Hold-attributes and other tools of evaluation control, some interesting pattern-matching constructs).
Simple usage
First consider simple use cases such as this:
LetL[{a=1,b=a+1,c=a+b+2},{a,b,c}]
(* {1,2,5} *)
We can trace the execution to see how LetL expands into nested With:
Trace[LetL[{a=1,b=a+1},{a,b}],_With]
(*
{{{{With[{b=a+1},{a,b}]},With[{a=1},With[{b=a+1},{a,b}]]},
With[{a=1},With[{b=a+1},{a,b}]]},
With[{a=1},With[{b=a+1},{a,b}]],With[{b$=1+1},{1,b$}]}
*)
Definition-time expansion in function's definitions
When LetL is used to define a function (global rule) via SetDelayed, it expands not at run-time, but at definition-time, having overloaded SetDelayed via UpValues. This is essential to be able to have conditional global rules with variables shared between the body and the condition semantics. For a more detailed discussion of this issue see the linked above answer, here I will just provide an example:
Clear[ff];
ff[x_,y_]:= LetL[{xl=x,yl=y+xl+1},xl^2+yl^2/;(xl+yl<15)];
ff[x_,y_]:=x+y;
We can now check the definitions of ff:
?ff
(*
Global`ff
ff[x_,y_]:=With[{xl=x},With[{yl=y+xl+1},xl^2+yl^2/;xl+yl<15]]
ff[x_,y_]:=x+y
*)
Now, here is why it was important to expand at definition-time: had LetL always expand at run-time, and the above 2 definitions would be considered being the same by the system during the definition-time (variable-binding time), since conditional form of With (also that of Module and Block) is wired into the system, and inside any other head Condition has no special meaning to the system. The above-mentioned answer shows what happens with a version of Let which expands at run-time: the second definition simply replaces the first.
Remarks
I believe that LetL fully implements the semantics of nested With, including conditional rules using With. This is so simply because it always fully expands before execution, as if we wrote those nested With constructs by hand. In this sense, it is closer to the true macros, as they are present in e.g. Lisp.
I have used LetL in a lot of my own applications and it never let me down. From my answers on SE, its most notable presence is in this answer, where it is used a lot and those uses illustrate its utility well.