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How is link juice divided from the navbar?
I have inner pages in the navbar that are example.com/product1/ but I am concerned that because it does not have a /subdir/product1/ that it is just seen as another link from the front page and juice divided accordingly.
Does Google respect the hierarchy of <ul> <li> <ul> <li> </ul> </ul>?
Based on Google's Pagerank algorithm which the published in 1998, all links are treated equally. This is also called the "Random Surfer" model where value is assigned because the hypothetical person surfing the page randomly clicks on any link.
Google has tweaked this algorithm over the last 20 years. It is now clear that they have moved (at least to some degree) to an "Intentional Surfer" model. That is, they weight links based on how likely they think that a user will be to click on them. Google has never published the details, but they may base their weighting on:
I have never heard that Google may base their link weighting on position within a nested HTML list. My guess is that they wouldn't use that as a factor itself. However, your nested list structure may effect how the link is displayed to users in ways that they do account for.
Using large nested menus can be bad for SEO. I'd try to limit the number of links in your menus that are on every page to about 50. We occasionally get questions from people with large menus that have trouble getting their other pages to rank.
Page rank is specific to each page. Therefore link juice of each link varies ( this is not equal for incoming or outgoing links).
Many factors plays the role but relevance is most important factor.
The problem is no one knows for sure.
All we've been told is that Google respects links based on page position, anchor text and relevance. The Navbar is highest, and the footer is the lowest. But it will try to judge how relevant your link is to the linked page.
