It sounds to me like you're saying that if libel law has become less effective because of the internet, people should make laws to restrict the internet, or perhaps restrict the ability of people to use the internet to spread information as widely as they can today. In general, I would much rather have laws that punish specific human behavior rather than laws that restrict a medium of human interaction. The same way I don't think a bar notorious for being a hub of defaming gossipers should be liable for hosting defaming gossipers, I don't think social media companies should be liable for hosting defaming gossipers, not least because just about every social media company and bar by practical necessity and by owners' preferences hosts people other than just defaming gossipers. I don't think Section 230 should be repealed or lessened, because Section 230 makes up for the ways in which First Amendment alone fails to protect speech. As a practical matter, I think that the monetary costs that Section 230 saves for people who would otherwise be "protected" by the First Amendment (because the First Amendment provides legal defenses without shaving off court costs) outweigh the monetary costs of being defamed/libeled in today's information age.
> And that anyone should be able to publish libel as long as it costs someone else to sue them?
Is this a good description of the problem?: that in the internet age people can more easily get away with publishing libel even though libel remains as illegal as it was before the internet age, and that in the internet age libel spreads far more easily than it used to even though libel remains as illegal as it was before the internet age. I don't have an answer as to how to reverse the greater effectiveness/spread of libel, but if the solution involves significantly restricting generally legal internet behavior (whether indirectly or directly), I probably don't want the solution.
Should you be able to sue a social media company for providing a medium for a person's libel just because suing the libeler directly would cost you more money? In a country with a First Amendment which bars government restrictions on "freedom of speech", should you be able to pass a law restricting a social media company's ability to unilaterally ban/allow/moderate user-generated posts just because suing the libeler would cost you more money?