You described Bluesky. They did get founded to pursue decentralization, but it's completely ignorable. It largely operated as a centralized service.

From my vantage point the decentralization stuff distracted them from winning, but I am too ignorant to be sure if that's valid or not.

The ideal twitter clone does, unfortunately, have to clone the "virality" aspect, including the recommendation algorithm, at least at first. A necessary evil, but at least it would be in better hands if it was rebuilt by more prosocial owners.