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The majority shares your layman's understanding, but the dissent does not. Last paragraph of page 111 basically says that the whole point of 230, as confirmed by the person who wrote it, is to avoid the either-or mutually exclusive choice.

https://techfreedom.org/wp-content/uploads/2022/09/2022-09-1...

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This is a good point, although it refers to what a politician says. It appears that there is no mutually exclusive choice for all the operations for the whole company. The exclusive choice is only regards to a certain piece of content. In practice this means that some parts of Facebook might contain editorial content by Facebook, and others editorial content by users, and Facebook could not censor the latter if they want to get Section 230 protection from liabilities. Unfortunately Section 230 does not stipulate that they need to make it distinct which content is which.

That ambiguity is where a judge has to use their judgement. So it's interesting that they started with the assumption that they had to make a mutually exclusive choice, but didn't defend that assumption.

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