It can get as toxic as 'regular' social media. The easist online community to join, Neocities.org, is going down the same path. To be honest, I've been seeing it become more popular amongst bigots these past few years. That said, the creator of Neocities did intend for it to become a replacement for Twitter, so I'm actually more impressed that it's not worse.

Technically speaking, you do not 100% own your website. If you host on Neocities, the creator of Neocities can take your website offline whenever he wants. Same goes for DigitalOcean, Wordpress, etc. The only way to have 100% ownership is to self-host, which can be complicated. As in, you would need a dedicated machine in your house that hosts the website, and as much as I love my website, I'm not willing to put in that effort. Always keep a local copy on your computer.

Most importantly: it's super easy for people to lie about themselves. Probably moreso than standard social media.

Look at this. I could claim to be any identity. Like so: and people would have no way of knowing I'm lying.