So far “more data” has been the solution to most problems, but I don’t think we’re close to the limit of how much useful information can be learned from the data even if we’re close to the limit of how much data is available. Look at the AIs that can’t draw hands. There are already many pictures of hands from every angle in their training data. Maybe just having ten times as many pictures of hands would solve the problem, but I’m confident that if that was not possible then doing more with the existing pictures would also work.* Algorithm design just needs some time to catch up.
*I know that the data that is running out is text data. This is just an analogy.
Nothing can fix things because teenagers will not cooperate. If Instagram could identify all its teenage users, those users would move to a platform that couldn’t. The only thing the restrictions achieve is a reduction in the market share of the platform with the restrictions.