I think more broadly you’re talking about the concept of “third places” and this has been suggested as another reason for decline of community. However, my argument is that the Internet replaced the “third place” for most people given it’s where people are spending time in terms of attention and resources rather than necessarily physical presence.
Free internet spaces (think old school forums, some subreddits, discord channels, of MMORPGs servers for instance) are pretty much OK, especially when the population is stable and not too big (idk how big is tolerable, but it's likely under 10k). The problem is that these ones too have declined a lot in favor of algorithmically managed internet places which attempt to boost “engagement” by using evolutionary psychology and neuroscience tricks.
You didn't answer my question. How is internet compatible with human biology, which was not designed for (no matter whether you believe in God or evolution) a technological lifestyle?