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Bluesky is far more user friendly and that’s why the people are going there. I get it, y’all love federation and ActivityPub, but no one wants to pick an instance, much less read a manifesto on decentralized social media. (Frankly, Lemmy has much of the same issues.)
I have had a Mastodon account since Elmo Muskrat bought Twitter, but it’s practically useless as few outside some specific IT-oriented users are on it. I got Bluesky, and it’s been way better as it attracts a larger variety of people.
I think the bigger problem is that there’s no universal search that will find something on any of the instances you aren’t blocking.
Search is not authoritative like it is on centralized social media.