I agree with this. The internet is a great tool. The web is extremely problematic and growing less useful over time.
Too many people think that the internet and the web are the same thing.
Really? I'm so happy and fortunate that hasn't been true for me. If the only thing I could reach was the web, well over half of the usefulness of the internet would evaporate.
None of that is really possible with Gemini.
Images can be inlined by the user agent.
Those two domains are orthogonal. Perfect privacy won't make racism or banality go away. It may make it harder to be targeted by ad farms, but it will make it easier for scammers and other bottom feeders to infiltrate and exploit online communities for personal and sometimes political ends.
Instead of being flooded by spray-and-pray spam, users in online spaces will be targeted by more sophisticated attacks based on estimates of psychology and interests derived from their public posting profile.
The DFW quote sums it up nicely. There is no technological fix for a lowest common denominator culture which rewards predatory greed over sincere mutuality.
The rest of your post I agree with; mostly that was my point.
"[The internet] is the way it is simply because people tend to be extremely similar in their vulgar and prurient and dumb interests and wildly different in their refined and aesthetic and noble interests."
Like, the internet is banal because we're (the rich world) all on it. It's not a weird little niche anymore. So it's now subject to all the (rich) world's problems. Racism is a problem on Twitter not because of content moderation difficulties or the lack of sufficient compute power to run sufficiently intelligent AI, but because it's a problem off Twitter too. Getting nickel and dimed, scammed, deluged by ads, or tricked by dark patterns is a problem on major platforms because it's a problem in meatspace too. We all know this, because our main fear with AI (the latest and greatest tech) is that it will soon also have all of these problems, and just amplify them even more than the internet did. It totally will!
But FWIW I think cool things are happening. Wireguard and Tailscale are cool. I hate to admit it, but some Blockchain stuff is cool. MLS is cool. ActivityPub is (maybe) cool. You just gotta get out of the browser.