Yeah, I agree.
This ruling is a natural consequence of the NetChoice ruling. Social media companies can't have it both ways.
> If that were the case, then their algorithms would enjoy no 1A protection from government regulation.
Well, the companies can still probably claim some 1st Amendment protections for their recommendation algorithms (for example, a law banning algorithmic political bias would be unconstitutional). All this ruling does is strip away the safe harbour protections, which weren't derived from the 1A in the first place.