Well that kinda works in general, but the issue is that it's a never-ending cycle of "cool thing appears", "cool thing grows and takes over the market", "cool thing wants to make more money so it becomes less cool", "it becomes so shitty that people look for alternatives and there are none because it created a monopoly", "it becomes actually unbearable and folds because people flock to a new cool thing".

Decentralized stuff kinda helps, but you can still see with e.g. email that there are a handful of giant "instances" and they have a huge control over the space, standards, etc. that others have to follow whether they like them or not. But it's still possibly to at least compete in that space (see for example ProtonMail) and it rarely becomes a true monopoly.