Bluesky has identified, I'd say correctly even, that key management for users is an *incredibly* hard thing to do.
But the solution, once again, ends up pretty centralized: for all users on Bluesky's main servers at least, Bluesky generates and manages the keys for them.
@cwebber That's why I run my own PDS. Then I can manage my own keys. I can't get away from their PLC though...