You have to make some trade-offs to compete with centralised services and their traditional UX elements. Stuff just works on atproto, it's all smooth and consistent and familiar to normies.
This feels like them just trying to balance the trade-offs.
Nostr as a protocol cares relatively little when it comes to these traditional UX elements and so it's much freer when it comes to identity.
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I agree, they made choices that worked and they were able to onboard a large user community.