When it comes down to it, there are 3 key issues with the "traditional" model of social products:
You are the product - This is true of 1) your data you put into the system explicitly, 2) the data you create by using the system, and 3) the predominant business model (ads) of these products. This could be fixed by:
1) some easy means to extract all data you create in an accessible format (only some users will care about this)
2 & 3) Allowing people the choice of whether they are the product or not. "Subscribe for no ads" seems like a good middle path alternative to selling ads without demanding a whole new architecture and operational model for federated solutions.
Separate of the above ideas is the fact that social products are really addiction mechanisms. Reddit/Hacker News/Tik Tok/Instagram are all heavily optimized to addict their users to their product. This is, in my opinion, where the real risk lies overall, because it is directly leading to aggressive micro feedback loops and information bubbles that are evolving faster than humans can process. I'm not sure what to do about this problem save for outright control/limitation attempts, which seems like a guaranteed mess.