I believe it to be true and I'd like broad, heavy restriction of algorithmically targeted content but that would go against the interests of massive companies. Not gonna happen. I'll take the win in this instance though, where national security concerns and congress' desire to look like it's doing something align to make a small positive change.
How is this a win at all though? Especially now. Every kid I know says Reels is a perfectly good alternative now (it wasn't two years ago). It's making a statement about something, but it's not helping any of the problems you noted.