And that's exactly why (ignoring the scammers or pump-and-dump businesses) it saw such heavy investment from VC/tech types. The promise they were interested in wasn't democratization even if that's what they told their users -- what they were interested in was taking a plentiful resource (digital bits) and building a scarce asset that they could use to further entrench exclusivity, status, and monopolistic control over what that asset represented.
Read back over every sales pitch for web3 games. At some point they always devolve into talking about how ordinary users will be able to rent seek: to "license" characters/weapons/gear and passively earn income from other players, or to hoard exclusive tokens/releases in the game and speculate on their future value. Web3 looked at infinite digital spaces and its response was, "infinity is a problem that we need to solve." And it's revealing to look at most web3 branded metaverse attempts and see just how quickly they reintroduced real-world concepts like housing/space scarcity (why on earth would we want a housing market in a digital space with no physical constraints?), and how quickly they leaned into cosmetics and customization as a monetization strategy rather than a user right to free expression.
In general, if a technological "paradigm" is primarily associated with and primarily popular with VC firms, it's probably not being developed with the user in mind.
On the other hand: federation, interoperability, mobile identities, and legal efforts to build a right to data export existed independently of web3 and have shown a lot more promise when it comes to actually increasing user agency.
