> Could X just basically stop moderating all together?
An algorithmic feed is one of the things that would make them a publisher without Section 230. So, they could, but they wouldnt be anything like X anymore.
> Basically is the law consistent enough to adopt a hands off strategy to maintain liability protection?
No, that’s why section 230 was adopted, to address an existential legal threat to any site of non-trivial scale woth user generated content. Withoutt section 230 or a radical revision of lots of other law, the only practical option is for providers to do as much review and editing of, and accept the same liability for, UGC as they would for first-party content.
If you wanted to tighten things up without intentionally nuking UGC as a viable thing for internet businesses practically subject to US jurisdiction, you could revise 230 to explicitly not remove distributor liability (it doesn't actually say it does and the extension to do this by the courts was arguably erroneous), which would give sites an obligation to respond to actual knowledge of unlawful content but not presume it from the act of presenting the content. But the “repeal 230” group isn't trying to solve problems.