I'm with you on the legislate differently part.

The background of Section 230(c)(2) is an unfortunate 1995 court ruling that held that if you moderate any content whatsoever, you should be regarded as its publisher (and therefore ought to be legally liable for whatever awful nonsense your users put on your platform). This perversely created incentive for web forum operators (and a then-fledgling social media industry) to not moderate content at all in order to gain immunity from liability- and that in turn transformed broad swathes of the social internet into an unmoderated cesspool full of Nazis and conspiracy theories and vaccine disinformation, all targeting people with inadequate critical thinking faculties to really process it responsibly.

The intent of 230(c)(2) was to encourage platform operators to feel safe to moderate harmful content, but it also protects them if they don't. The result is a wild-west, if you will, in which it's perfectly legal for social media operators in the USA to look the other way when known-unlawful use of their platforms (like advertising stolen goods, or sex trafficking, or coordinating a coup attempt, or making porn labeled 'underage' searchable) goes on.

It was probably done in good faith, but in hindsight it was naïve and carved out the American internet as a magical zone of no-responsibility.