Door 1: try to take down sites offering a lite version that people prefer over x.com.
Door 2: improve x.com to be better than third-party sites.
Which is, Elon?
How much does he even care about the details of X these days?
I suspect the original C&Ds were just their legal team wanting to "do something" upon hearing about Nitter somehow, and not Elon personally commanding them.
...and I noticed that X did bring back a (quite) limited JS-free "lite version" recently, so maybe they are changing for the better.
To be fair, I don't think X could ever satisfy many of the users seeking Nitter services simply by definition.
Door 3: turn off API.
Making services better isn't the goal of the company, I'm sure they could make it better in a month if they wanted to but they'd lose money (which is what's important).