In one way, this is a good thing. People, especially those that wildly use Twitter, will begin to see how much they are getting for free, as you have said. This is why so many of them misuse the platforms with the discrepancies they share up and down, which is mainly why I don't use it and am not active.
On the other hand, if this "next phase" is not executed properly, it may backfire, and it very well might be the beginning of the end of Twitter. Many think that Twitter can never die, but the truth is that Twitter isn't the space, nor is it the "bird app" itself; it is the people. And just like how Yahoo's glitch gave space for Google to come in, allowing Google to come through for people when their trusted search engine and email service failed. That is how Google got in, and they have been soaring high since.
Nothing lasts forever, and it is only a matter of time before a social media platform that probably already exists will see a hole in Twitter or similar web2 spaces and sweep their audience (or users) off their feet and onto their side. Or wait, does it not exist already? Hive's the name! We just need to get the word out.
I am looking forward to this conundrum phase and how it will all play out.
You're right, people are what constitutes Twitter and at the moment Elon musk probably feels invincible and he's trying to activate his business skills and make more money for himself. Let's not forget power can buy money, money buys more money. There's nothing social about the Twitter's purchase and I think you're right. Irrespective of this nothing lasts forever.
Oh yes, Hive is what you're talking here and I think the only problem is marketing at the moment. We're already the next phase of the internet. It's a pity people are still keyed into what web2 is serving them