It doesn't ban kids from connecting with their peers on social media or even from following popular (or esoteric) influencers.
It just prevents providers from algorithmically optimizing kids' feeds for engagement or whatever else, and adds some limits to when notifications are allowed.
Both are actually pretty modest and would seem entirely reasonable in light of what concerns you raised.
There's enough plausible evidence linking social media to problems in youth that we have to bite the bullet and try something, then reassess afterwards, rather than be caught in analysis paralysis about what may go wrong with attempts to fix the issues.
Just an anecdote.
>> Life, uh, finds a way
Things worked just fine over multi-tap keypad SMS, and there were even complaints about kids being sucked into their phones then!
Pretty sure if you physically separated every teenager on the planet in a dark basement, they'd have rats carrying braille messages implemented in a week.
Just because it wasn’t as bad when you were young doesn’t mean it was fine then or now. Kids need to be able to be kids, not preyed upon as revenue streams.
Not as bad can mean fine depending on your goals.
So while my cohort was bathed in cathode rays, I don't think it was as influential.