I believe local-first peer-to-peer networks have gotten close-enough to being able to deliver feature parity with centralized Application Service Providers for 5+ years now, the industry just hasn't caught up.
For social media platforms like Facebook and X, their "killer app" features are all solvable with hash-based data structures (chains, trees, forests), p2p capability systems, and gossip protocols. Identity systems are solvable in ways that non-technical people can understand.
Part of the solution was the p2p stack maturing. The other part is that centralized solutions have normalized a lot of user flows that p2p can be competitive with, users have been trained up on a lot of patterns that previously wouldn't have been palatable in the market.
There is extreme market demand for it, and the zeitgeist is tuned into the societal and financial failings of ASPs right now.
Facebook is trying to act as the free relay and archivist for the entire world's social graph, there are a lot of hard problems to solve there which personally, I think contributed to social networking silently dying and degenerating into the monstrosity that Social Media is.
Once this stuff starts making it into end-user products, I suspect it's going to be a one way door. P2P can provide user experiences that centralized services can't match - either for technical, financial, or legal reasons.
We are in a sweet spot of opportunity for building the web as it was promised to us.
If folks working in this space want to compare notes, or are looking for work on a well funded no-BS R&D team developing this space, my email is in my bio.