Interesting thought, don't know if I agree or disagree. Lots of internet subcultures that are actively harmful to marginalized people (manosphere, alt-right, etc) but how would regulation impact this if people can just make their own spaces where its more acceptable (even encouraged) to be hateful?

Agreed. There have been many studies on the rise of polarization in American politics, and I believe the Internet and more specifically social media with its algorithms sometimes makes it harder for users to find people/ discussions with non-affirming viewpoints, trapping people in their biases.