Sounds like a firing / soft firing / come to jesus moment about the viability of the business...

They could have launched paid subscriptions, they even said they were looking into it, crickets...

Pretty much. It's fun seeing idealists get slapped by reality. If you want to protect your ideals you better know how to fight for them using the same tactics as your competitors.

Learning how to build a board that is in your favor, making alliances with less than pure players if needed, and being ruthlessly competitive allows an ideal to become reality.

You are wrong about pretty much all of that, including your assumed reasoning for why this is happening. Jay chose to change her role so she could do deeper work on the technology. That's it.

The issue is that no one really believes the corporate speak any more. Bluesky does not get a pass on this, re: VC funding

I have concerns about one piece of messaging I've seen lately, working on a writeup, stay tuned

What's fun about it?

It's like seeing your kid learn how to walk. They'll fail a couple of times, but they'll get toughen up and finally learn.