Some of that is rose-tinted glasses.

1. Sharing was never really safe, open source by default only became possible because of SaaS and rent-seeking behavior.

2. Early web (not internet) wasn't hyperconnected. With the advent of global-scale social media it was immediately obvious to many this will lead to monoculture and reduced diversity. What thought to be the information superhighway became the information superconductor with zero resistance, carrying infinite current. Also known as short circuit.