I think you're on to something.
I also think there's a difference in where the network effect kicks in for different types of social media. IMHO, Lemmy has just enough activity to not feel empty, and even then I wish there was more comments to interact with and more niche communities. With Pixelfed, I feel like as long as there's enough interesting posts it makes sense for people to visit regularly.
The White House has said Musk and his DOGE colleagues are "special government employees." It has yet to be seen of that arrangement is legal, but as it stands, they are part of the government workforce which is why bureaucrats are "going along with this".