Honestly, I've been waiting for something like this. I feel like the Internet wants to divide itself into two tiers: an anything-goes tier where identity is fluid, and a tier where you're identified back to a real-world person. The latter is used for anything having to do with money, and is also used for reputation.

(Actually, I think there can be multiple tiers, but let's not complicate things.)

That second tier is inherently not private, but I think it's nonetheless where most people want to spend most of their time. Without it, you're easily overwhelmed by whatever wants to shout loudest: trolls, spammers, AI, scams, etc.

It's one of those situations that benefits from putting all of your eggs in one basket, and then ensuring that it's a really good basket. Not that X has shown itself capable of building really good baskets, but I do think they're on to something.