Every generation has a new baseline. The younger generation will not be able to imagine having anything other than doctors and psychologists in the phone, and they are content with it because it's all they know. Social media might be all the social connection they have, and that will be the best thing where they will have the best experiences, they won't know another baseline. Eventually maybe the best experiences will be had with digital companions, etc.
The only losers here are old or bitter people who have tied up their worldview into their own time and cannot see or comprehend that the world has moved on with a different bound for the experiences and expectations.
> Eventually maybe the best experiences will be had with digital companions, etc.
Obviously I can't speak for all of Gen Z (and I realize we're no longer "the younger generation"), but my friends and I don't want any part of this, and feel optimistic rather than bitter that things won't go the way you're describing. I seldom meet anyone in my age group that isn't talking about moving away from social media, cancelling software subscriptions, all of the things that millenials and Gen X seem to be so excited to continue building and promoting.
Even at my workplace the "older" people are the ones that are excited about stuff like AI jazz remixes of rap songs and AI generated short films, while literally everyone else under 30 finds it pretty cringe and makes fun of them in DMs.
So all that to say, I disagree with your outlook, but I guess time will tell.