To do that in the short term, the Fediverse probably just needs more money. The competitors have a fuckload of it and can introduce features way faster because of it. I think Mastodon’s been “exploring/planning” quote posts for like 18 months and haven’t even begun working on it. I’d love to have user-controllable, optional algorithmic feeds in Mastodon (not replacing the main reverse-chron feed) but I can’t imagine it existing in less than 5 years.
Mods cracking down on the plague of ‘polite’ harassment (ex. passive-aggressive FYIs about CWs) wouldn’t hurt. It’s not as bad as it used to be but it’s chased a ton of people away.
I think in the long term the Fediverse has an advantage. The only real goal Fediverse services have is to get better for users. At some point, Bluesky and Threads will have to make money or die. I don’t think they have a way to do that without damaging the user experience.