the Chinese state is censoring and fencing off some of the content there as a result. Source?

What makes you say that? From my recent experiences with short form media I’d say there are plenty of bright people involved. There’s tons of actual good STEM/Maker/DIY/Educational/History content and the medium lends itself well to quick community building

I imagine merch sales are not insignificant, maybe? I see some artists selling special items on occasion like vinyl presses. Do musicians on tiktok with lots of views make money? I’m not sure how that works but it seems popular