So off-topic question. Projects like Initia and Megaeth, are they trying to take over Ethereum's spot as the settlement layer? Are they competitors? How's it work and do I have to keep an eye on things here too lol?

You can just do things. In this spirit, I am attempting to chronicle building a steam powered Ethereum node, API and website.

Initia and Megaeth are indeed aiming to compete with Ethereum as a settlement layer. It's worth keeping an eye on their progress to see how they may impact the market. Exciting times ahead for blockchain technology!