If the UK gov made a social media, it would be identical to what Bluesky already is I reckon.

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If the UK govt made anything, I'd be amazed, Squeaks

is that a good or a bad thing?

At this point bluesky has some points for me. They successfully got a huge mass of people on an open source app front and backend. There's actually people in my town, people I met on tour, people not talking about Bitcoin or the protocol. Their "planned" decentralization efforts for ATProtocol are not really moving along I know. I think Nostr is a better protocol, but I can almost see an outside group like Free Our Feeds(but probably not them), actually building an alternative firehouse system closer to nostr (light and easier for individuals or small companies/developer to share infrastructure) but ATprotocol compatible, before I can see nostr people getting over themselves and the "inevitability" of Bitcoin and nostr. I've seen no indication the main devs care at all about changing the core image of nostr to be a place for anything. You can't just push it off until later because connotations set like concrete.