LBRY is not dead. This is more a test of the community, than anything. The lawsuite is kinda dumb, because you can't really stop a protocol. Lbry inc, the company was aunctioned off a few days ago, but lbry files can live on to be served on odysee or elsewhere.

Nostr is not designed to host large files. For instance, The entire "Hobbit" movie was "uploaded" to nostr, but all it was, was a link to a file on a private server. Relays push that text link around. The client can play the embeded files and some clients host images for you, for ease of use or automagically host it on third party providers. I doubt client servers would allow large multi megabite videos though. If it did, it would face centralization and legal pressure like any other server. Something Lbry is resistant to.

The holy grail of file hosting is easy, redundant, and nostr like censorship resistance. Even Odysee hosts most of the content on its own servers for ease of access, and still does, having moved them to areweave servers apparently. A centralization weakness, but not true closure.

Some other proposed solutions such as Sia, and Ipfs also have shitcoins attached to them, all holdovers from the "buzz" and funding around ipo's and alt coins, over the last few years. Many genuinly felt an altcoin contributed to the game theory of making defi work. If they had all used zaps instead of trying to run their own money currency AND technology company (seems really dumb in retrospect), they would have likely been spared legal issues, while benefiting from adoption.

Not sure why i write big long replies to your posts, but the questions are good.