We've lost so much since the 90's and 00's.
Most people are using less configurable computers: phones.
We can't easily install the software we want on our devices (iPhone especially, but Android also to an extent). Add to that the fact that we have to go through a distribution channel that takes a 30% cut. It's gross af.
The social media platforms took over from websites. Nobody really bothers with personal websites or blogs anymore since the majority of the population get their news from social media. Why spend effort building for the long tail?
Forum communities are dead because of social media. Facebook pages and subreddits are not the same.
There's one search engine, and it has a pretty big moat. This search engine built a browser and is now trying to destroy ad blockers via extension capability removal and web bundles.
It's pretty obvious that Google is trying to kill the web. AMP, steering away from semantic web, etc. They want everything to be Chrome.
Firefox doesn't have as much user share because of aforementioned browser.
We invented some cool protocols along the way (blockchain), but also lost a few that were really great (bittorrent, DHT).
IRC is pretty dead. Now there's Slack and Discord. Riot is a pretty distant third.
Apps and websites got SUPER BLOATED.
A few things have improved, though: Git is pretty freaking sweet, and Rust is the language of the future.
It's like when Link wakes up in Ocarina of Time after retrieving the Master Sword. Except in our case, everything's suddenly shiny, but feels plastic and artificial. We've discovered we're now renting everything and craftsmanship has withered away to a world of composability and integration.
It's a simple story: billions and billions of dollars chased after capturing and exploiting the average human user. Each company it super simple to adopt their platform. To do so they had to destroy the competition and create a moat. These negative externalities coupled with high concentrations of users to platforms has left a wake of destruction.
The indie, free and open web got knee-kicked by the giants.