Problem is that everyone that shares their data will draw everyone in a form of co-dependence as their data will be used for governance and content decisions. Even if there is the at least one obvious difference of some users sharing data and some users not doing so.

I don't think you can close a platform like this again. It won't be the end of civilization either and perhaps another platform will at one day take its place. Arguably the privacy protection for western users are even better if the data doesn't leave China.