Way I see it, the people that watch regular streamers won't watch anything vtubers related, including the people that switch back and forth between facecam and avatar. So, these guys are just shooting themselves in the foot. The fanbase they want to appeal to have no interest in the medium.
Now, vshojo is contrary to this. But as times have shown before, their viewers only watch vshojo and their adjacents. They might as well be competing in a different market. That audience too don't really watch vtubers, they just watch twitch streamers, regardless of the medium.
Though, time will tell if that audience will bleed into the dedicated vtuber fanbase. Personally, I doubt it, because the kayfabe has no interest to them. Perhaps recent happenings will lessen the taboo on discussions about alternate accounts, since the genie is out and all that, we'll have to wait and see if companies choose to go that route, which is something I highly doubt will happen ever. Probably the Twitch adjacents at best, but that's it.