No third party owns your data. Imagine a social network built like this.
the newer definition of "decentralization" is more akin to anarchy. Collectivism vs individualism.
Anything less centralized than email isn't going to be "Web3" because it's not going to be a web at all. For the purposes of the internet, there is no functional difference between federated and decentralized. Two strangers must have a way of contacting each other -- something like an IP address at a minimum. That's a centralization point right there.
In the case of the web, DNS is going to be the main way that things are centralized.
Blockchain is similarly federated -- it just has a way to make sure that each node has a mutually agreed upon state. That doesn't make it decentralized, it just makes it redundant and distributed.
A social network is the place to gain clout, so high profile people would continue giving away their IP for free.
The network itself could still display context-aware advertising.
We didn't move to "web3" when db sharding became a big thing, or when NoSQL caught on.