If a handful of people had this power all along, then it was never actually decentralized. What about people switching to knots? Are they just wasting their time?

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This is a common question people have about bitcoin, it's essentially "What if the core team were corrupted" and the answer was always, "That's likely to happen one day, but the code is open source so we can switch to another implementation." What's happening currently is essentially a test if that statement is true.