The types and scope of information to which we had access was largely dictated by physical proximity, our social circles, books, newspapers, TV shows, movies. These sources gave us an incomplete picture of reality. There's nothing wrong with this per se, as long as the individual knows the extent to which and the way in which their information is incomplete. In Thinking, Fast and Slow, Kahneman cites numerous experiments in which people are asked to make decisions based on information which they are told has a particular likelihood (e.g., 50%) of being true. But the more common flaw in decision making seems not to be the extent to which people trust a source, but the extent to which they assume that the sources are supplying them with complete relevant information.
Media users often employ some kind of skepticism toward the information with which they are presented. For example, viewers often discount what they see on Reality TV: they assume that the behavior of people on such shows is authentic in some sense but not in others.
But what about searching for information? You start off with a question about an upcoming decision. Sometimes, you find a relatively concrete, straightforward answer. Other times, you're searching for something harder to answer: whether or not to have children after 40, say, or whether or not to vaccinate your children, or whether or not to travel to the Middle East, or whether o not that lump on your shoulder is a tumor (in my case, thankfully, it was not).
Again, it's important to say that we never had perfect information to help us make these decisions. As a culture, we probably weren't hip to this at first, but in the recent past, and certainly once the internet came along, skepticism (or rather, cynicism) about mainstream media went, well, mainstream. It is true that our personal social networks, newspapers, or books were incomplete and biased sources of information. I think that the information we acquire through online search is incomplete and biased in different ways, but I wonder if the very act of searching increases our erroneous belief that we're getting complete, or near complete, information. The act of searching, of picking your own source, is likely to make you think that you're acting independently.
But search really magnifies certain biases in ways that mainstream media did not. Search results are, of course, not all that there is. They are based on what others click on (and a "click" is as much an indication of immediate curiosity as it is of the veracity of the information) and based on what we've clicked on in the past. So, confirmation bias probably influences search results. But the act of searching from among many (sometimes hundreds or even thousands, if you're especially diligent) sources makes you feel like a careful information consumer, someone who's not simply being spoon-fed information by those interested in making a profit.
Perhaps mainstream media was always interested in making a profit. They also were (and continue to be) interested in maintaining the status quo. It's been pointed out many times how this maintenance of the status quo was a bad thing, how it keeps populations from questioning despotic regimes, antiquated laws, bigotry, etc. But getting free of status-quo-enforcing sources of information has it's potential downsides. We may be disappearing down information rabbit holes based on shock value and pre-existing notions of how the world is.
But the point I wanted to make here relates to the certainty we have when we search that what we find is all there is. It seems to me to be counterproductive to refer to this as the illusion of agency or the illusion of choice, as one might be tempted to do. All decisions are made from incomplete information menus that are influenced by others who do not necessarily have our best interests in mind. But you can be more or less aware of the degree to which the information presented in those menus is complete and how it may be biased. The very act of searching makes it a bit harder to see these things clearly.
The object of media literacy is not to eliminate bias in one's media diet or finally obtain complete information, but to increase awareness of bias and incompleteness.
Post script: what I've really been describing is "What You Find Is All There Is" (WYFIATI). "What You Search For Is All There Is" really describes the sense that the world is defined by what you're curios about or interested in, which is a separate but related cognitive bias.