Section 230 certainly encouraged centralization of the internet. Without it, platforms would be liable for content they hosted, which would be financially unviable.
Instead, people would have to self-host their own content on their own infrastructure. (230 provides no protection for people that do that.)
In addition to preventing the big monopolies from arising, this would have made censorship and surveillance much more difficult.
As it is, we’re in a situation where even the speech of the POTUS is beholdent to corporate censors.
The rest of the DMCA drastically shifted the balance of power toward copyright holders (and was also designed to increase consolidation of the industry); section 230 was necessary to offset that. I’d be happy to see the whole law repealed, though it would have the side effect of shattering the business models of the big tech monopolies. Repealing 230 but not the rest of the DMCA would be madness.