This works.
Let's do it.
But I think that technology is going to make it easy to work around structural separation. Facebook derives its power from building dossiers on billions of people. They are intelligent motivated people. I don't think that pushing different activities into different orgs is going to do anything to limit that power.
Their surveillance business model is what needs to go. Will society collapse if we shift from behavioral to contextual advertising? I doubt it.
I like the idea of spinning off the search/recommendation/filtering from hosting (for video) and crawling (for search). We should have more diversity, filtering is not to be trusted to a monopoly.
It's okay to have a dream be infeasible in real life.
My dream government functions as a scalpel, dynamically reacting to situations faster than any one person can think and creating outcomes better than any capitalist market. However, history has shown this to be infeasible so it will always remain a dream.
You kowtow to the app store rules, or you're out. There are no other alternatives.
We need laws and regulations to protect freedoms and liberty and give power back to the people.
I think your analogy is all wrong.
No. This is exactly what they should not be doing, because it requires detailed ongoing precision regulatory work.
The government is not a scalpel, it's a sledgehammer. It can easily say that the same company can't make both third party app stores and operating systems, or both video search/recommendations and video hosting. It's a clear enough line, it isn't mired in technical details, you swing the sledgehammer at the fault line between the two markets and break them apart. Then you go home.