The internet used to be more decentralised. There were lots of smaller websites, blogs, forums etc, which people discovered via word of mouth, search engines, and forgotten things like webrings. It's only recently that big monolithic social media platforms took hold.
Tech is often cyclical, we could now be swinging back to a more decentralised web, but with the benefit of newer technologies. Right now it's almost a new "wild west" as new platforms appear and new ideas like federation are experimented with. Some will rise, some will fall, some will go off in the corner and do their own thing. While all that happens it's going to be a bit messy, much like it was in the 90s with the initial rise of the web.
Successfully monetising a platform means doing it in harmony with the the user base though, at least to some degree. A platform can't make money from users if it scares them all away. Social media platforms are especially vulnerable too because they rely on users to create their content. Nobody comes to Twitter to marvel at the system infrastructure, they come to read tweets.
The way certain tech companies are behaving currently is too knee-jerk and heavy handed. They are panicking and damaging their platforms in the process.