I'd tend to agree. I think a lot of it is that we in the West have such easy lives, compared to even 50 years ago, and so much time on our hands to sit around and wonder and worry about all manner of perceived problems, both personal and societal. Not that long ago, a lot greater percentage of the population were employed in physically challenging occupations. People were dead tired when they got home from work and then had to take care of personal obligations after work. By that time, they were exhausted and didn't have time to sit around and worry too much about other people's opinions of them or whether they had gotten enough recognition and approbation on social media, since that didn't exist. They just had to go to bed and try to get enough sleep to be able to function the next day.
I'd also say you're correct about pathologizing various manifestations of mental distress. And a lot of that has come as manufacturers of psychoactive drugs conduct clinical trials of their prospective new drugs in certain types of patients with certain characteristics. Then, if they find the drug may help certain individuals with particular mental pathology that may be close but not exactly the same as the currently known ones, shazam, a new DSM disorder is created!(first it was ADD, then ADHD) Then, when members of the public see the resulting ads on TV, they start worrying if they have that disorder! Then you google it and read about more disorders you might have. It can become a vicious cycle.