I think that self-hosted relays basically do this... So you would just connect to the one relay from your device, and that relay is pulling notes from all the others. I guess this is kind of creating an on-phone version of that? Is that really what we're getting at here, a relay running on "localhost" that all of the apps would connect to?

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It would be easier for normies to switch too…but are most normies running multiple Nostr apps on their phones? Why not a Docker image / Start9/Umbrel/etc app?
Yeah I doubt that most people are running two separate clients. But because of the nature of Nostr with it's multiple connections, it's a technical architecture question that should probably be resolved..