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 #pubky, like the internet, is a layered solution, designed to scale.

Nostr does one thing well, transmitting notes and other stuff, from one user to another, using relays (which are web servers).

Pubky tackles DNS, which nostr could import to allow every pubky to own a their own piece of the internet, in a censorshp-resistant way.  This would be great for users, but, understandably, a bit scary for others.

Pubky can also use web server, and they could use nostr relays, or even tor, because it's a layered solution.  It's not really in competition. 
 I see…