Oh, I think it goes further than that. Many of these companies would not exist without massive subsidies. Their business models were untenable without some monied interest pumping them up. And where did they get their money from? Mainly money-printing, rent-seeking, usury, or good ol' legalized fraud (which is what I consider "burying a right to sell your information to advertisers in the ToS, to the tune of orders of magnitude more value than you get from the service").

And it's not that their services were fulfilling a need, just at a large social cost. Many created a need by using those massive amounts of funding to destroy existing, sustainable services. They're a net negative for the economy and society because they replaced workable businesses (albeit with limited reach because the users bore the full cost) with businesses that will collapse because they're built around ubiquity and forcing non-users to shoulder part of the cost (the only way to break even while paying back investors).