I don't agree with the basic premise that the driver is fear. In my experience the entitled children of helicopter parents are not timid and fearful. Quite the opposite. Being raised to believe that your wants and desires are equal to or more important than those of anyone else doesn't make you fearful when you get the rude awakening that the rest of the world isn't going to treat you like your parents. Rather, it makes them angry and frustrated.
Personally I don't see any chance of easily resolving this. Children are no longer raised to respect traditional authority figures. They are taught that their viewpoint is equally important and valid. A generational change is needed and I don't see it happening.
That this will eventually resolve. How? I am unsure honestly. Not civilizations have stayed at a peak forever. Someone has to say no. Something has to change.