Yep, discovery is still a major pain point for pretty much every Fediverse platform. Probably the biggest issue the Fediverse faces right now, IMO.

Part of it is due to technical limitations due to the way ActivityPub/federation in general works. But another big part of it is (what feels to me like) a stubborn aversion to convenience, a trend I see a lot in FOSS dev communities. When you have devs that would be content reading a news feed off of a .TXT file passed to them on a 5" floppy, and users who want features on their platform, you end up with the situation we're in, where it's impossible to convince the mainstream user to migrate. If the mainstream user doesn't already know who is even on the platform in order to follow them, and has no effort-free way of discovering accounts to follow, they're not going to stick around. Especially when on just about any Mastodon server you join, your local/global feeds are almost all politics and high-level tech discussion.

I think that the average user would be supportive of FOSS and the Fediverse in general, and probably likes the idea of a non-corpo platform where they have more control over their feeds and their content. But I feel that it's not worth trading away discovery or "algorithmic" tools for most users.

I think if Mastodon (or a Mastodon-adjascent platform like Misskey or Pleroma) could find a way to develop an algorithmic recommendation engine that respects user privacy (perhaps basing recommendations on a file stored on the user's account, which they can modify/backup at will), we could see a sizable increase in Fedi users.