Network effects are incredibly strong
Yet, Bluesky has grown to 35M+ active accounts, even though they started way after us
We have the advantage that we’re not growth focused
This is not an "advantage". This is an excuse we tell ourselves to cope with our failures.
The inevitable enshittification will do its job eventually,
And when it does, the majority of people will go the next shiny "free as in beer", VC-funded siloed platform and we are going to be just another "They don't know" meme.
It looks like we are talking past one-another.
What I am trying to say is that "getting the user to complete a login" is not the novel part that is missing. What we are missing is a way for the user to have control over their actor ID, so that they use the same id regardless of what server that id is delegated to.
So, unless I am misunderstanding you, what you are proposing is an OIDC provider which could be used to authenticate on any other service. That's good, but it doesn't solve the problem that if we had an unified OIDC provider without a DID, all of the actor ids would end up dependent on the OIDC provider.