Governments can censor most relays (they even have multiple options! DNS censorship, IP censorship, a combination of both, and even more shit) and arrest relay operators.

Nostr is not immune to governmental censorship, only to corporate censorship. It is a worthwhile goal on its own, but it's not the same thing.

Governments becoming more authoritarian is not a win for Nostr, at all.

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Accurate.

Which is why hardware is key. Decentralized mesh internet solves this.

The problem of governmental censorship does not have technical solutions, if not partial. It cannot.

The reason is that freedom of speech includes the right to publicly associate a statement with your identity. If the government forbids that statement, it can arrest you.

This isn't to say the problem cannot be addressed. It may, through political means.

Technical development is part of what's needed, but it isn't all that is needed.