What kind of bargain could they strike? "Well, we're going to have YouTube ban sexists but allow unlimited racist content. Ok, deal?" It's hard for me to picture any amendment of section 230 that would be both material and palatable to both sides. Not to mention that there's the whole constitutionality question, where corporations have enhanced rights of political speech post Citizen's United, and any legislative infringement on that can probably be challenged all the way to the top.
I just want to observe that the position of "conservative" Republicans is to insert the hand of a central government to limit the operations of a private company, and the Democrats are taking the self-regulation stance, the "hands-off option," if you will.
Federal legislators on both sides believe that federal legislatures should have more powers, and they usually get them. That's the real history of American regulation.
While Republicans generally push for less regulation than Democrats do, for them it's more about protecting business profit, not about an ideal of non-interference (even if they may try to frame it that way for PR reasons).
The existence of which there is no proof of. And which is entirely legal to do anyway, though short-sighted from a business perspective.
...which so far appears to be necessary. Sure, FB announced yesterday that they are banning "LOL voting machines steal ur 401K" ads, but all of these announcements are really well past their sell-by dates, and Facebook has established repeatedly that they will be the last ones to do anything. I doubt we're ever going to "holy shit!" about them.
From the right's point of view, that's the desired effect. The right is already being deplatformed. Removing 230 protections means everyone is deplatformed. That will kill their businesses as companies with 230 protection can outcompete them. Scorched earth policy.
However, this is only because the right wanted to classify these things as the public square, and therefore subject to first amendment protection. The left claims this is private business and not subject to first amendment.
A judge in the WeChat download ban case just handed Trump a public square ruling. It will be interesting to see if they do anything with that or continue with scorched earth instead. At this point, I think the right wants to see these leftist silicon valley companies punished, so a public square ruling may be too little too late.