The .us domain should’ve been universally useful for state and municipal governments, but most of those began registering directly under .gov, and not even in an orderly hierarchy under .st.gov
But that was simply the easiest way to market your website as a trusted government entity. And now nobody has ever heard of .us domains in active use.
.us was primarily a hierarchy structure which in practice made confusing and hard to remember domain names, whereas .gov addresses hand out single domains which are generally easy to remember.