That's not really driven by the government so much as the media companies.

Big media companies have weaponized the government to serve their interests, it makes sense that social media companies will do the same.

They’ll write the rules together, make the barriers to entry even higher, and pat each other on the back.

Then it’s on to the next moral panic, this one’s been fixed!

Strongly disagree. The spectrum of transmission is regulated and parcelled out by the government, and it could be used differently. Indeed it is, with whitespace wifi devices. The battle over how many empty adjacent channels should be required for these devices is real, and ongoing. Take away the regulation and TV broadcasters lose. People who have televisions but no working knowledge of computers lose (if spending less time on the TV is a lose). People broadcasting to each other bi-directionally, over longer distances and through thicker obstacles than the current wifi bands allow, win hugely. The media companies are intertwined with the government, sure, but this is fundamentally a government problem.