There’s surprisingly little development power behind Bluesky, though, and its recent surge in popularity will no doubt have slowed down nice-to-haves like federation.

I just looked at their Github, and surprisingly Bluesky seems to have less total commits than Lemmy.

On the other hand, ATProto solves a lot of problems Mastodon has (no two servers showing the same list of replies, for one)

This is absolutely solvable with Activitypub, its just that Mastodon developers dont seem to care about it.