I guess, then the only interaction that doesn't take place within a channel is DMs, right? Everything else would ideally be allocated. Or are DMs just in "Personal Channel for Npubbunchofnumbers", along with a little private notepad, list of articles to read, mailbox settings, etc.?

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Yeah, if I have a DM chat with my wife, there's no reason why it could not also have our family calendar, Collab docs, music, movies, ...

Even just for yourself it can be seen as a community of one.

Seeing things as relays/communities all the way down is the easiest way to let normies handle and understand all this. Myself very much included.

We're all used to that format from our current apps.

I can see how Nostr adds value to that, over something like Teams or Slack, as we don't have to tie one user to one account. They can see everything together and we allow them to select one of the predefined accounts for that channel when signing.