While your small projects with next to zero market share fight it out between themselves, Microsoft keeps swallowing more market share making more billions.
Who do you think is the real winner of your sandpit fight?
Keeping the separate projects at the national level also precludes the furious lobbying efforts against it that could target members of the union with... "friendlier ears". It also allows for smaller scale testing to work out kinks, in the same way that some US federal law started as laws in specific states.
You are right, we need to make a bloated project and need to pour in millions into it like we did with Gaia-X. Then it will be a big trash-fire with smoke visible from afar and not just some small sandpit.
Until you can bribe officials to the tune of billions the quality of your software won't matter. The only reason why ms keeps winning is that it keeps bribing.
MS also keeps winning because they have billions of dollars to pour into the UX of their Office suite. The FOSS community doesn't spend a lot of money on hiring professional UI designers, and it's "do-ocracy" doesn't handle UI design well because UI design isn't seen as "doing" so much as nitpicking the choices of the programmers who are "doing all the work".
MS bribery is a factor, but if we use it as an excuse to ignore our own faults as a community then we're just screwing ourselves over.
Who do you think is the real winner of your sandpit fight?