Well put!
At it's core, the modern internet-using demographic is incompatible with the pre-2000 wild west free speech internet.
To not mince words -- current internet users are not technically educated or paranoid enough, and their expectations have aligned with the guarantees provided by the current walled gardens.
That was the internet of "If you run an exe downloaded off a webpage, you install a virus with zero warnings."
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That said, I do get where Elon was aiming, and I think news media is shit for either deliberately misconstruing or not understanding his position.
To wit: that in a truly open marketplace of ideas, extremism will be shudden with the sunlight of transparency.
So instead of nanny-stating things for people, show them how stupid neo-nazi's sound, and let them decide for themselves.
What I think he underestimated was how unprepared the world (users + civil groups + government) was for a return to that model.
For example, if Twitter enabled tools to help journalists correlate associated accounts... how many news organizations still exist who have staff to do that work?