WTF, they actually gave up entirely on sovereign identity?!

"In principle, the cryptographic keys for signing repository updates and DID document updates can be held directly on the user’s devices, e.g. using a cryptocurrency wallet, in order to minimize trust in servers. However, we believe that such manual key management is not appropriate for most users, since there is a significant risk of the keys being compromised or lost.

The Bluesky PDSes therefore hold these signing keys custodially on behalf of users, and users log in to their home PDS via username and password. This provides a familiar user experience to users, and enables standard features such as password reset by email."