This may be opening a lot of core-side discussion, so I am aware of that in suggesting this. I realise also the way this happens is what core does right now. However, I would like to open discussion on how useful having 'uncategorized' is for users. Could we just have no default category?

+1 million. Though, this probably should be a core ticket.
Good idea, if we can change it there and Gutenberg gains it - even better! I added it to https://core.trac.wordpress.org/ticket/36228 as this felt right over a new ticket. I do wonder if this is controlled in Gutenberg we could speed along that as a fix for WP here.
Kill it :knife:
I am pretty sure "default category" doesn't play nice with the REST API anyway.
Should we still allow people to select Uncategorized as a category? This would also be a bit weird.
Should we still allow people to select Uncategorized as a category? This would also be a bit weird.
In an ideal world it would be eliminated entirely, IMO.
+1 馃敟 to even it existing as an option, it's a really weird experience.
I've created a core ticket, so lets tackle this within core for now.
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+1 million. Though, this probably should be a core ticket.