Learn English – “How to do”–what does it mean and when did most of society opt to no longer say it

The phrase know which way the wind blows is quite old. Even the sense of "knowing the direction of public opinion" dates from at least the early nineteenth century (see The Phrase Finder).

There is a slight association between that phrase and a "weatherman" that dates from at least the early twentieth century. There was a classroom activity called "Weathervane" to teach compass directions in which one person was designated "weatherman" and called out an arbitrary "direction of the wind" (description).

Beyond those facts, there seems to be little evidence that Dylan's lyric existed as a phrase before he set it down in the Sixties. (It's hard to prove a negative, of course.)

Nice, in its most common sense as an adjective means, either

1) Giving pleasure or satisfaction 2) Being kind or generous. Humble.

So when somebody asks you, "How are you?", then would you reply to them, something like this,

"Hi, I am very pleasure giving!" or "I am kind and generous!"

No, right? Hence, it is incorrect to use nice as an answer here. Whereas, fine can also be used to mean, "in good health", which is an appropriate response.