Outside the classroom there are still plenty of in-person activities from informal gatherings, to sports teams, to clubs and civic events, and in those situations, the few people who are sitting on their phones are the ones more separated from the rest.
I think a lot of us who were early involved in building some of the web that led beyond Web 2.0 into algorithmically-driven media consumption see the massive dangers, and have probably sometimes even overreacted in terms of kids' access to it, but it's certainly better than the alternative.
Phones ARE banned from school and the kids DO socialize in person there.
But then they all get home and stay in touch. Some have phones, some have tablets, some just their school-issued laptops. But they're constantly talking, 1:1, in various overlapping group chats. They organize getting together in the neighborhood or meeting up elsewhere over the weekend. It's where a lot of the drama happens (which isn't great.)
If you prevent your kid from accessing this communication layer, it will 100% affect their social life.