Lukewarm take at best. It's cool if it's not for you personally, but a lot of people use it, love it, and benefit from it.
I think the stuff that Loops is building out could eventually become a standard feature that a lot of Fediverse platforms optionally offer. That kind of interop for the people that want it is frankly a win.
TikTok have a length limit of 10 minutes. YouTube videos (proper videos, not shorts) on the other side seem to get shorter compared to a few years ago. The gap isn't that wide anymore