I was around back then too and experienced the full depth of the wild west. AI dwarfs that in every way. What you're talking about is small potatoes by comparison.
Even the old internet, I'm kind of with you on that being something the market should naturally respond to which is why Google rightfully nerfed its search tools over the years, software changed and network infrastructure evolved.
This is different. The government already silently manages many things you never hear about and limits information reporting. Reasonable people generally go "ah, ok" for things that are beyond a threshold, because it seems like a sensible role for governance.
I think everyone agrees government should not simply be curating AI models that only spew public information or say something inconvenient about a political party or whatever. I also don't think people want AI models that are constantly trying to guess whether you're a child and should have certain information. That's not largely the issue.
You can list me the threats that you think AI poses, and I'll let you know if you're warm or not.