The personalization component takes this a step above. Making something very broadly appealing is one thing. Targeting what will keep you specifically from turning it off is a whole new level.
Your grocery store app does this and gives you personalized coupons. Will everyone who buys groceries get a $100k+ settlement?
Imagine a feed that actually just ends when you run out of posts from people you follow instead trying to endlessly keep your attention by pushing stuff it thinks you might like
If I've read all of the posts from my friends I would prefer to not see anything else, but that doesn't maximize engagement for ad platforms so
I could well see it being so much less effective as to not be a problem. Or maybe they'd be even more effective, and if we caught them explicitly knowing that they were harming children, it would still potentially be tortious.