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There was another discussion where this came up on HN recently, but people get quite emotionally defensive when you start scrutinizing their reasons for staying on social media, so it is hard to have an honest conversation about it without a bunch of hyperbolic takes.
In my experience, it was designed to be addictive, partly by using our own behavior against us and partly by vindicating the desire for attention. The idea that we need to be sharing every aspect of our personal narrative with the world is problematic, as it turns out, but we are so steeped in it that's there's no chance of purifying those waters, again.
To your point, yes, there was some aspect of this back in the day, what with obituaries in newspapers being out there to both acknowledge that a person lived, but also put out the call to any old acquaintances to come say goodbye, but it was a laughable effort by today's standards of maximum self-aggrandizing and competitive social engagement. We have to ask ourselves if that is a socially and mentally healthy position to be in, which is an admittedly scary question.