I think it describes a phenomenon we've seen repeated over and over almost without variation. Every single internet service slowly gets shittier as they switch from investment to returning investment. Everything going back to MySpace and Yahoo Spaces went from awesome to abandoned as soon as they started trying to monetize the platform they built. It's fair to have a word for that and observing the inevitability.
Does it do any good if it is inevitable? I don't know. The Fediverse seems to be a direct reaction to it, and I'd like to see more.