Let's break all this down shall we? Not as if this hasn't been done before...
Guns:
Nelson can equip the lvl 80 trip 16 Ls, compared to the quad 14Ns of the PoW (assuming you're using those), have both greater range and damage per shell. The 14s win in terms of shell spread, as they are already capped at level assuming you have decent gunners. The 16s will occasionally land a full salvo on your target, and when coupled with the range of the Ls they allow you to fight on par with most BB5 drivers.
Note: If you miss with the 14s, it's almost entirely your fault, where as the 16's spread will always be terrible, even with 120 gunners. The 14s also trump the 16s in damage per SALVO, as you will likely be hitting the target will all of your shells, as opposed to landing 2-6 average with the 16s.
Engines:
There is no doubt that the PoW is faster than the Nelson. The fastest (decent) set-up I've managed with the Nelly is 42-44 knots OH, which completely loses out of the PoW's 47 knots. However, the Nelson's lack for a need of a scout opens up the potential for an extra engineer, which could give you more OH.
Ship style:
In terms of optimzed play style, the Nelson is considered a "Line Fighter", while the PoW is a "Rusher." A line fighter will follow the battle lines, imaginary lines bordering the "No Man's Land" between enemy BBs. This is mostly a defensive position, for defensive players. A rusher is a BB that breaks the lines and attacks the enemy BBs head on, which is considered an offensive position.
Mainly, the lack of a scout on the Nelson mean's it can't effectively rush an enemy, while the lack of range on the PoW means it makes a poor line fighter. Likewise, the Nelson's main three triple turret set-up helps with the line role, while the PoW's speed obviously makes it a better rusher.
I'm not going to bother touching on AW set-ups and various others, because I view them as more of for "recreational" playing. I find that the information I mentioned above is best for average, everyday grinding.
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