To believe that the kayfabe wasnt just a convinient backdrop to some is kind of dumb, considering how much we know about daily lifes of our vtubers. That said model do create a degree of separation between human self and a character, and the model being a stand in for your face allowed you to be whoever you want. The degree of separation itself also allowed for, ironically, more intimacy with the audience. Overall, I see the kayfabe and a model as more of a mask than a part to play.
That said if you are doomposting NOW about the fall of vtubing, and also cause UGLY FLESH IS NOW DEFILING OUR SACRED COMMUNITY, I wouldn't say they are unfounded, but I would say Saruei, Kson and Nyaru have been doing flesh streams for years, so you are late for that, the roots are set. Bsides, we already know that in vtubing community being a whore nets you an audience that will make you wish you did anything else instead, them being mostly SEA and all.
And if you are worried that your usual internet grifters that grift off of internet drama have covered one situation and one vtuber, remember that these people watch Charlie not because they actually care what he has to say, but because they lack motivation and attention span to do their own reps, so we aren't going to get flooded with normies either.
TL : DR - stop doomposting naggers, we aren't fucking dying.