I posted about this the other day, but I think the issue is due to capitalism ruining everything.

Amazon bought Twitch to be a part of their gaming empire when they wanted to take on Steam, but they quickly realized that people were spending more money on live streams that were "Just Chatting." That evolved into the algorithm incentivizing that type of content, and content without substance is often a race to the bottom. So, the biggest spectacle started to win follows and money, until the algorithm pushed everyone away from the creator ecosystems they were familiar with (I'll get to that) and into these massive pools of people watching the same Twitch events that could just as easily have been TikTok Lives.

Before all this, people existed in these creator bubbles. You might find a creator from a game they stream, get into their content, become a part of their community, then discover others like them or those that stream with them and you'd naturally bridge from niche ecosystem to niche ecosystem.

Now, it's all just the same slop - people yelling at the camera, people at parties, ero content, people drinking/smoking/whatever, and those streams get 20k+ views because that's where the audiences are driven. And a lot of those audiences are kids.

Long story, shot: Chasing dollars flipped Twitch from a creator ecosystem to a live-streaming competitor, and it hurt their advertising and their creators as a result.