I think you’re correct on all points. Most of the content creators don’t make a huge amount of cash, but there’s a few things to consider before dismissing the argument I’m making:

First, there is the intersection of human psychology and economic behvior. Even when people got paid in “likes” they would obsess about their social media. Now that they can convert that into actual dollars, they can convince themselves that all the hard work for very low pay is an investment in their future earnings power. This alone will keep many many young people out of the workforce; and

Second, in the aggregate, these platforms ARE paying out billions of dollars each month. It may be hard to get to the top, but mid-tier revenue on one or two platforms could easily pay a lot of bills. Regardless of the distribution curve, a huge amount of money is pouring through the dam into the pockets of an entertainment segment of the economy.

Considered together, I believe that the result is still very clearly that potential productive labor is being redirected out of the productive work force and could not be lured back unless wages rise dramatically (resulting in spiralling inflation) or unless the revenue dries up completely (from assets value collapse).