It might be a good business (like youtube for kids) but would it actually be good for kids? They should go outside with their friends, and people in the tech industry should stay away from them. Allegedly good intentions ("help you stay in touch with your friends") will eventually turn into what it always turns into.

Nothing is universally good for kids in too big quantities, but I think this approach would be less bad than any other approach to the moral panic around social media.

I would never let my kids access YouTube Kids, and I probably also wouldn't let them loose unsupervised on a kids-only internet either, but I would much prefer it to the alternative whack-a-mole approach of trying to make the actual internet a kids friendly place, which will eventually destroy online anonymity and turn a few of the biggest tech companies into de facto gatekeepers for everyone and handing them a regulatory moat the size of the Atlantic.