On the contrary, Section 230 was a short-sighted action to allow unchecked behavior in an attempt to get that rapid growth, without solid, reliable protections behind that growth. And while rapid growth can be good, we
have to come back and put proper regulations in place to keep things from crashing to a screeching halt. The stock market's a great example: You can strip out protections, and yeah, growth will skyrocket, but when you realize what that house of cards is built on, it crashes down and makes everyone bankrupt.
And the suggestion that regulation hurts small companies and helps big ones is a myth generally perpetrated by those large companies. "Don't regulate us, it'll hurt the little guys" is an amazingly frequent scream of big monopolies trying to protect their business models.
Content moderation actually doesn't scale well at all, because nobody's really gotten automated content moderation right. Small companies have little to no problem moderating their comments sections or business relationships, but large tech companies actually can't do this without cutting deeply into their profit margins.
Yes, they'll use "expensive monitoring and filtering software", but those systems tend to suck, which is why so much malware and bad content comes through Google Ads and the Play Store and why Facebook's platform has been gamed in countless ways by bad actors. Automated systems present massively additional liability compared to human employees, and removing that immunity would ensure large companies couldn't just hand off moderation to an algorithm.