I think there is a lot more to this than many people think.
If more people participated in hobbies, then they would spend less time on the internet. The time they do spend would be more targeted and focused instead of mindlessly scrolling and scrolling and getting baited and agitated.
They would also form communities, as you suggest, with common interests and get to know people better. It's basic socialization.
Part of the problem is that for some reason there is a notion that everything has to be a business today. There's a Fidelity Investments TV commercial running right now where a daughter says to her retired mother, "Did you paint this [painting]? You know you can sell these!" And a business is born. Why? Why can't she just enjoy painting for painting's sake. For her own enjoyment? Why is money what decides if something is valid or not?
I encourage people to start hobbies. And be bad at them. Be terrible at reading, stamp collecting, woodworking, gardening, model railroading, brewing, or whatever. Do it because you like it. If you happen to be good at it, great! If all of your carrots die, that's OK, too. You got to spend quality time with yourself, which is more important than all the carrot sales you could possibly make.