The issue with the current iteration of fedi is that it misses the main problems that average, non-technical people experience with social media, so those people remain unaware of fedi and/or can't get past the friction of using it, as a result they remain on the mainstream services, all while fedi remains a nerd echo-chamber with significant unsolved issues around funding, moderation, spam protection, etc (the only reason it doesn't collapse under spam/unsavory content is that it's mostly just not even worth spamming due to its irrelevance).

I'm not particularly sure the current iteration of fedi being around is better than other systems... it sucks the oxygen out of the room and reduces/fragments demand for an actually good replacement for FB/X/etc...