The deeper problem is advertising. It is sort of a prisoner's dilemma: all commercial entities have a shouting contest to attract customer attention. It's expensive for everybody. If we could kill advertisement permanently, we can have an internet as described in the question. This will almost be like an emergent feature of the internet.
For the remaining free sites you will see advertising in different forms (self promotion blog, the upsell, t-shirt stores on everysite, spam-bait).
Advertising saved the internet.
Now tracking.. for advertising or other purposes is the real problem.