The issue was that in 1996, it was not yet clear whether ISPs, hosting companies, and web services counted as "publishers" or "distributors". Compuserve vs. Cubby Inc found that Compuserve was not liable for users' content because it didn't moderate (i.e. was a distributor), while Stratton Oakmont Inc vs. Prodigy Services found that it was liable because it did (i.e. was a publisher). Legislators felt that this setup a perverse incentive and so enacted 230 to that companies would not be penalized for good-faith attempts at moderation.
[1] https://en.wikipedia.org/wiki/Section_230#Background_and_pas...
That is incorrect. It was not liable because it didn't moderate (i.e., was a dumb-pipe distributor) and because it had no reason to know of the defamatory content.
That latter piece is fact-intensive and case-specific. Which means expensive litigation in every case. Which is not remotely the same as a liability shield.
Section 230 means you can have user generated content that isn't perfectly moderated. The result of section 230 being abolished isn't some panacea of decentralized blogs and websites, its usenet flamewars and 4chan.
As say a blogger, you would only promote 3rd party content you approved of.
Lawmakers don't care about the technical details.
Unmoderated forums work fine when they're a small group of people with a vested interest in preserving the norms of the community. They fail quickly if they can't establish barriers against the outside world that prevent people with no skin in the game from hijacking the community for their own agendas. The modern Internet is much more similar to the latter than the former.
And I think a good bit of the problems on the internet today are because moderation is inadequate on these huge platforms, but they are passed off as safe places for everyone. It has blurred the line between trustworthy and untrustworthy, everything is now just ambiguously okay-ish.
https://en.wikipedia.org/wiki/Wireless:_The_Essential_Charle...