Key management in nostr has a long way to go but it's based on a very simple design. This has allowed it to gain adoption quickly. It's a bottom up approach, solving problems if/when they surface.

The first DID specification was published in 2018. It's a noble effort where every edge case is being carefully considered.

My take is the DID team looks at nostr and says: "You clearly do not understand, it's not that simple"

Meanwhile nostr continues growing because developers have something easy to get started with.

nostr now has the advantage of developer adoption combined with increasing user adoption. History shows that momentum has no regard for technical purity.