Broad statements like Thiel's shouldn't be taken too literally. I don't think the main point is the broad statement about the trends themselves.
The main point is the classification: Flying Cars vs 140 Characters or Bits vs Atoms. FB is worth almost $1trn. No real technical achievements or advancement. If fb didn't exist, something else would be the friendster. Tesla, Apple, MSFT, Google, etc. are closer to the flying cars end of that spectral dichotomy. We could debate where.
Thiel attracts antagonists in the same way like leftists do. Paypal, Palantir, his capital allocation theories & such are not very performant on his own flying cars VS 140 characters test. It's a hazard of being an idealist. The traditional question a leftist authors get (chomsky, etc) is about selling his books on amazon.
But yes. There certainly is a lot of failure in western economies, especially in the "public-private" realm. These aren't constructive failures, and this sort of stuff is deeply limiting. You know, cutting edge aerospace engineering is risky. Let's take easier examples. Why can't we procure buildings or do basic infrastructure without scandals and runaway costs?
Ancient civilizations managed to build incredible aqueduct systems, public buildings, etc. We've regressed.