How's Malta doing?

Since no one from the US is allowed to travel to the EU, you are not going to be able to get an on-the-ground report. Very few Americans go to Malta (or have even heard of Malta), unlike Brits. Start with their tourism website or call over and ask.

Have you looked at the gov.uk website? This states that mask wearing is compulsory inside and out (it seems that lots people have been fined for noncompliance); museums are open; cafes and restaurants have to close at 5pm and only 4 people can share a table; bars and clubs remain closed and hotel restaurants are room service only.

It depends on what you want from a holiday, but it sounds rather limiting at present. Covid infection rates are low.

This might be helpful:

https://www.visitmalta.com/en/covid-19

It's unsure what passport you're traveling under, Canadian or other? It might make a difference but I'm unsure. I might suggest calling the number provided for clarity?

A couple of weeks ago Malta posted an incentive for visitors. I posted it on a travel FB group and someone in Malta said it was still difficult for the locals. So, like some other countries, are they creating a double standard? Not sure. Perhaps ask on TripAdvisor Malta forum, particularly if locals are frequent members there.

Malta has one of the world's highest COVID-19 vaccination rates, a bit ahead of the US and the UK.

MariaF mentioned incentives, and the government is providing subsidies to hotels to pass on to visitors. They’re not giving away rooms, but it might be enough to help attract business.
https://www.frommers.com/blogs/arthur-frommer-online/blog_posts/another-mediterranean-destination-says-it-will-subsidize-tourist-visits

Would you be staying in a hotel? Could that hotel give you a frank report about conditions?