I have an axe to grind about interaction-free delivery services, but it's a different debate. Public spaces are for when you intend to see other people.
Public spaces as I've experienced them are much better than malls. For one thing they're outside. It's not easy to be outside for many city dwellers. They're also a place where you're not expected to spend money. You can bring your own food, drinks and entertainment. You can do nothing at all and not be perceived as a threat. You aren't screaming over the noise of car traffic. The silence is a revelation when you experience it for the first time.
I spent my summer in public spaces. I miss them dearly when I travel to concrete jungles and sleepy suburbias.
You’re making the point for them. Interaction with service providers shouldn’t be a primary social outlet for people (as much for the sake of the service provider as the customer); previous generations’ choices just made it one of the most important outlets since it’s one of the most convenient, especially if you’re willing to pay for it (they major driver of almost all 20th century social trends).
Even happenstance “excuse me, pardon me” type small talk to peers is worlds better than a forced corporate smile from a waiter who relies on tips to survive, because at least then, you’re forced to have some amount of empathy/introspection (since the other party isn’t being paid to be nice).
The rub of this, though, is then plenty of people only like to interact with service providers (especially as they get older) and this new world can feel isolating to them, but I don’t think that’s a measure of Gen Z or whatever’s commitment to civic socialization.
But in practice, the leave-it-at-the-door delivery-or-no-touch-pickup world is not one I'd describe as higher trust and more social. Times Square? Other similar "close a few roads and have a mall" places? There's nothing there revitalizing socialization compared to the previous generation of indoor malls.