This would be true if we were rational thinkers. We're not. There's a huge influence of emotions and irrationality on our thought processes, and the oh-so-glorious "marketplace of ideas" is thoroughly exploited by the people who capitalize on that, instead of actual good ideas.
As the obvious example: Germany in the 1920's had a really free and open marketplace of ideas, but also a lot of shitty ideas that resonated on an emotional level. In the 1930's those chickens^W ideas built the coop which they came home to roost in during the 1940's.
I don't think society as a whole has a good answer here yet (despite our large and sharp giant mind). There's universal agreement that some restrictions on free speech matter - yes, even the US has some. There's less agreement on how much. There's also not a lot of agreement if that's all it takes - I mean, Germany has taken a pretty aggressive stance on one particular kind of speech, and yet they see a recent rise in stances that sure look a lot like Nazis with subtle cosmetic changes.
Applying econ101 to that problem is a truly sophomoric approach, but it's not helpful in analyzing the actual phenomena.