Both seem to use a “signed rotation” approach. Algorand keeps your public key stable while adding metadata that your spend key has changed and links the two. Atproto similarly uses the recovery key to sign a rotation op which can regenerate your signing key, additionally readjusting the tree to preattack state (by setting prev of the rotation to the last precompromise state).
This seems like an improvement of some kind, but still leaves gaps for lost keys. Keybase style approach, or multisig social recovery may also help.