I think there is a drastic difference between being once off exposed to bad images, and an algorithm making a choice of whether to subtly over time expose the Pokemon-interested child to racist Pokemon videos vs non-racist Pokemon videos on Tiktok. (Or anorexic Pokemon videos, or..)
Amount of time spent and repeated exposure being the key.
The question is really what kind of human is raised, rather than raw exposure as such.
So for that reason things are different IMO than than 20 years ago.
Yes, of course some people would fall into internet forum rabbit holes 20 years ago, and papper-letter-friend-induced rabbit holes 100 years ago. But it did help that it was like 5% of the population instead of 95% of the population spending their time there.
Regarding your last point, I don't necessarily disagree (again I didn't check up on this law, I care more about the laws in my own country), but I think arguing against the law will go better if one does not display naivety when making the arguments
Don't say "it will be better if all kids are exposed to everything early" (it won't), instead say "the medicine will not work and anyway the side-effects are worse than the sickness it intends to cure" (if that is the case).
But the algorithm stuff is bad for everyone, and makes a lot of money, so it's obviously never ever going to be part of any regulation.