It's more the parts they didn't make federated that hold it back in this regard.

Maybe it's good for end users but that doesn't mean much if it can fall into the same enshittification trap as the others. Also, centralised moderation. I don't want to be dependent on an American company's moderation rules.

There was an article here recently about someone who really tried setting up their own including a did:web and they ran into many problems. https://notes.nora.codes/atproto-again/

There's still many little centralised ties in bluesky and I doubt they'll ever relinquish control completely.

Personally I like nostr a lot more, it seems to be more censorship-resistant and really decentralised.