It solved it by opting to remaining extremely small. Being small means the basic censorship of illegal material is cheap on relay operators, and accepting remaining small means no one else needs to care about users and their experiences.

Sure if Bluesky ended up just as small as Nostr or merely one order of magnitude better, then Nostr failed cheaper, although you might be surprised how much money is spent on Nostr every month, I heard something like a million dollar, so who knows which network is more efficient at failing to grow 🤔

My point is, no one has any answer to how to build large networks that aren't guaranteed to devolve into centralised platform.

I am trying to encourage people to give up and focus on small networks