I'm still not a fan of how 'web3' has become a buzzword for crypto. The name seems like it should describe a much more interesting and general concept, not just "it's a service, except you can make money/sell NFTs/whatever".

But I'm not sure I'd write the decentralised web off yet. A lot of the issues it's faced are UX and design problems more than fundamental issues, and the way the world is going makes it seem like a comeback could be inevitable at some point.

After all, a good federated or decentralised system could be resistant to the age gating laws in places like the UK and Australia at the moment, and be a lot more tolerant of content that's critical of those in power than Twitter or Reddit would be (like with criticism of Israel and the goings on in Gaza, criticism of Trump and his administration, protests against authoritarian regimes worldwide, etc).

Large social media services are very willing to bend the knee to those with power (both political and corporate), while a more decentralised service may very well not be, especially if either the people using it are hard to identify or the infrastructure is spread across the world/in places with much more lax laws.