The picture brought forward often is that of the ancient Agora of Athens. And maybe the concept of ad-driven social media is so compelling because the Agora was initially simply the market place.
But even then, the picture ignores how differently social media (even the non-ad-driven Fediverse) works from personal human interaction.
Social media is more like a conference hotel with randomly shuffled together working groups in separate rooms and a depending on ads or no ads:
* either a weird conference committee inciting arguments and paid by amount of broken furniture
* or pretty much no conference committee at all.
While the first option *clearly is the way worse option*, I don't find the second very compelling either.