Does web 2.0 works now?

Yes, Web 2.0 still works.

I think the whole 'web2.0 no longer works' mentality has come about because so many platforms have moved to nofollow links in content, are displaying content via javascript bloat, or are slapping noindex tags on pages unless the user pays a monthly fee. The trick is to research the lesser known (and thus less-abused) web2.0s/parasites, and don't rely so much on shared lists full of the usual suspects.

They still work and can also be used for diversification

Yes, web 2.0 is great for tier 2 and diversifying your link profile.