What you call an algorithm here is a recommendation engine. I don't see why they should avoid having something like that. Ideally they would have a modular system, so you could plug in your own favorite third-party engine.
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"Show all posts from newest to oldest" is an algorithm.
"Shows random 10 posts, unordered" is an algorithm.
It's not possible to show a list of items without an algorithm. You may of course take issue with what the algorithm is, but you can't not have one.
There are lots of users' made algorithms and the main feed is one of them by the Bluesky, you can unsubscribe to it (AFAIK), I have one for myself and anyone else interested in the said topic of it.
The main feed also can mix every other feed you signed up for.
I think only the storage of a profile's information is decentralized, not everything else