Correct to both.  did is fundamentally broken, and did:web should never have been.

The root problem is the "either/or" fallacy and applying binary thinking to decentralization.

When I started the work on DID it was to create content-addressable identifiers using web standards.  But it got co-opted by lots of folks that wanted to use the term "decentralized" in their marketing (normally to sell centralized tokens).

Fediverse was created as step one of a system that would offer competition to sites like facebook (though it lurched in the direction of open microblogging and then activities).  It's better than the status quo and allows open source competition to giants.

It was only supposed to be the first layer, and that content addressable PKI would come after.  But things have become more political and folks talk about "The Social Web" (caps) as a brand.  And that gets in the way.

Still innovation continues.  I send this message from nostr which is (decentralized) content addressable pubkeys to fediverse, via a bridge.  The grass roots finds ways to route round centralized structures, eventually.