Yes I think the "social platforms in general" part is key. It's hard to imagine what a social platform would look like that wasn't harmful in this way. Maybe chat apps I suppose, since 1-on-1 interaction is less of a popularity contest.

But anyway, I think the reason that facebook is aware of the problem but doing nothing is not that they are cynically exploiting people, and it's rather that they don't know how to solve it.