I am a huge fan of Jonathan Haidt, and think he's done a great job in explaining some of the cultural shifts going on, and the changing of morality/psychology in our society.
But I feel like he is overselling social media's impact. He even mentions in his testimony, that the correlation between social media use and mental illness may be around r=0.10 . That is a fairly weak correlation. I also have not seen a study (note that this doesn't mean one doesn't exist) that has done a good job of controlling for the selection effects involved with the data, to attempt to understand if there is any causality involved and what direction it would go. My hypothesis is that those with mental illness would be more likely to use social media more in the first place.
Social media feels like a bit of a bogeyman in our society. There are 100% issues with it, and I don't necessarily think it's net-positive for humanity, but it's only one part of the ever-changing environment we as humans are now finding ourselves in. Blaming social media won't solve our issues, I feel like they run much deeper. Some of the deeper issues are around meaning, identity, belonging, status, decreasing tolerance for discomfort/inconvenience, increasing detachment from physical reality, etc. Our amorphous culture is guiding us down this path and it's really hard for us to grasp...