Really I think this comes down to what you think makes experiences valuable. Obviously virtual and physical construction aren't the same, but do they provide the same benefits? It seems to me that building things is a valuable experience because it teaches kids about hard work, grit, teamwork, perhaps curiosity, and makes all those things fun. Building things virtually seems to me to provide all those same things. Maybe you think getting your hands dirty had some value, in which case yea kids are missing out, but I generally think they're able to get many of the same things with the added benefit of increased use of imagination since they can literally build anything.
Now obviously the internet is what you make of it. Like anything the the internet can be a crutch or a tool. Kids can sit in front of youtube for 10 hours a day and learn nothing from it, but I'm not sure that wasn't also the case in the past. Keeping children on track probably requires more parental oversight than in the past, but I'm not exactly sure that's a bad thing either. Exploring the internet together with your child can easily be a way to bond with them while also creating a lifelong love of building and curiosity.
Is building software that much different from construction? I think so.
"If I wanted to find something all I needed was to look for it."
True, but most of the content is just someone else's. If you wanted to find something out when I was a kid, you formed a hypothesis and tested it - not just taking the word of someone on the internet. The internet can be useful for information, but not as much for knowledge and possibly even less for wisdom.
"Instant messaging made it easier to interact with friends, not harder."
Maybe sort of. I don't think it's quite the same as in-person. I think we are seeing this on a mass scale with pandemic restrictions too - that virtual presence isn't the same as physical presence. How does one learn to handle emotions in person rather than just shut if the computer when an argument arises?