It is the full commoditization of the content creator where they are no longer even a fake person but a 10 second gag in the app’s algorithmic control mechanism over its users.
So what if someone has 50 million followers on tiktok, they are one burst every day who can be fazed out rapidly as needed since the audience doesn’t have time to form a long form bond. The content is just as boring and forgettable as the rest of the content creators who have 10 followers.
This helps reduces rivals from poaching large content creators and solidifies control in the algorithm maintainer.
What's bad about parasocial relationships?
Vtubers aren’t really 17 year old Japanese girls who are your friends who play cool video games.
It's a false cure which in best case scenarios distracts people who are unable to form meaningful relationships from that fact and in the worst cases actively contributes to that decay and contributes to severe mental problems.
The Björk guy is probably like the best example for absolute worst case scenario but theres also shit where female streamers are forced to conceal their real IRL romantic relationships cause they get death threats if those are revealed.
This isn't to say streamers are inherently bad people for relying often on parasocial dynamics to earn their living, only that capitalism and our society has forced the streaming platform into acting as a replacement for the relationships people are robbed of.