Well the problem circles back around to the issue that the American system has been thoroughly infiltrated and broken. An impartial Judiciary was supposed to keep the Legislative and Executive branches in check and supposed to curb these sorts of things. They've been captured by corporations and side with their masters against the people and constitution when the corporations are blatantly abusing the rights and protections of the people.
If you could reasonably expect to have your 1st amendment rights protected by a judge in a case against Twitter then no reform of 230 would be needed. But Twitter just kills you with its megabucks in a giant PR smear, erasing your ability to interface with modern society, and intimidating/disbarring any lawyer that dares to represent you. If any of that fails they just shop around for a judge they've purchased.
I don't think the problem is the judges. The problem is the current law. Under the law, a social media website is a privately-owned service -- no different than this forum. If Pundit wants to ban me or delete my posts, the law supports him. It's his site, and I can't successfully sue him for violating my First Amendment rights if he bans me. It's the same with Twitter. It's a private site, and people can't demand the right to post there - any more than I can post signs on your lawn.
If we want to change that, we have to reform the law in Congress.
Repeal the 1996 law allowing consolidation of media, which was previously restricted
I guess you're talking about the Telecommunications Act of 1996?
https://en.wikipedia.org/wiki/Telecommunications_Act_of_1996That had a huge number of changes - many of them considered beneficial to competition, though overall some think it was harmful. However, simply disallowing mergers only slows down the trend towards monopolies, it doesn't stop it. If smaller companies are less successful, then the larger companies will just slowly push them out of the market by spending rather than acquiring them. In any case, the 1996 law mostly only applies to television - and the topic is social media.
I think there are changes that can be made to streamline regulations in a way that favors small companies, but it is tricky.