You're assuming that the interests of the state are aligned with the interests of the people which is a false premise. The state is a parasitic organism and those in power will always seek their own interests and those of their allies. What liberal democracy achieved is to somewhat bind the interests of the rulers to those of the majority of the population. But this is history as soon as the state starts to control the Internet because today technology enables effective and cheap mass surveillance and censorship like done on China. In the current path all democracies will slowly evolve to illiberal democracies which are effectively authoritarian in all but name.

In Brazil the ruling party (and also the "opposition") are enamored with the Chinese model and as such Musk influence is much preferable and is a balance force in the current political system. If X is blocked in Brazil it will join the select roll of Russia, China, Iran, Pakistan, Myanmar, North Korea, Venezuela and Turkmenistan.