Why? This is seems like a total non-sequitur. It's pretty obvious that the individual posting illegal content is the person responsible for it and not the platform it's posted to, unless the platform is soliciting or refusing to remove said content. The anti-230 reasoning seems purely motivated by punitive thinking rather than what actually makes sense in reality.
> Those things are great, but are ultimately out of alignment with a commercial revenue model.
I would say it's out of alignment with the ad model specifically. Currently, there exists a financial incentive to curate content in a manner that pleases advertisers and the internet mobs that patronize their businesses. However, if social media companies were somehow forced into a subscription model, they would have a financial incentive to avoid banning users because it would hurt the bottom line, it would also eliminate the incentive to curate content to the prerogative of advertisers, and it would make the user experience much better due to lack of ads and the need to create better user experiences to maintain retention.