The housing bubble bursts when a malicious business model failed and was declared illegal. We still have housing. It seems reasonable that valuation of social media companies can be greatly reduced, and their business models be restricted by regulation, without all social media disappearing.

I suspect many politicians are eager to control aspects of social media, specifically political speech, for similar reasons they are happy to control district boundaries: it gives them influence over their constituents. I fully expect to see legislation purposed that would decrease many platform's revenue while increasing their operating costs. We are already seeing operating costs increase as Facebook hires a new team of lobbyist.

I felt the same way about IRC rooms. They are gone now.