Exactly. It would lead to a smaller Internet. Giant platforms built around scaling past what human moderators can handle would be unviable, but subject-focused communities and human-curated ones would thrive.

Bear in mind, the law is not going to actually or reasonably crucify you because someone left a nasty comment on your blog while you were asleep (nobody seriously believes this can happen). The law needs to be able to go after companies that built social platforms that create extremely bad social effects at scale, who are focused on creating as much engagement as possible to fuel ad revenue.

Honestly, the "largest" social platform that would likely benefit from Section 230's repeal is Reddit: They'd have to make some policy changes and probably discourage more cross-posting, and very large communities might need company-hired moderation. But the general design of it being built around small communities moderated individually is likely to allow it to adapt to the change pretty well. Maybe they'd shut down the really large general subs, but it'd be pushed more towards being a shared login way to be a part of a bunch of distinct communities.