I'm not sure if I can contribute anything more here.
Tagged template literals, aka "template string literals" are yet another technology adjacent to JS and HTML using the word "template". But it doesn't have much to do with the submission.
It's just a fancy name for advanced string interpolation in JS, and has no inherent connection to DOM elements or fragments.
But it is used by some technologies such as styled-components and Lit (the web component library).
styled-components is probably also where the obfuscated CSS-in-JS class names in the bluesky markup originate.
There is also a `<template>` element that is used by ShadowDOM and web components.
But nothing of that is the essence of the post, these are just things that coincidentally use the word "template" (and, less coincidentally, the concept).
As far as I see, it is about the wish to standardize declarative data-binding to DOM trees.
Basically, a React-like API built into the browser, but less detached from native rendering algorithms.