Loli Ui started as a punishment a few years ago when she lost a game to Niji's resident lolicon. She had to do a stream with a loli PNG of herself. After that happened a few more times (always as a punishment for losing against someone), it became a staple meme of her community. Like chat would ask to bring out loli Ui or say she's cuter than regular Ui etc, then she'd deny them and pretend it doesn't exist. She usually does an annual loli stream though. Like last year, she got a Live2D rigged for it to promote her music album and then never used it again. It's a long-lasting in-joke that she keeps evolving, from the PNG, to L2D, to 3D and the music video. The MV was supposed to be a bonus in tandem with the 3D stream but it blew up much more than she ever imagined.
Two of the things Ui dislikes most are having to act cute and acquiescing to what chat wants so naturally, she has no desire to do Loli Ui content. But she'll throw her community a bone once a year, similar to how she does an annual Line Stamp drawing stream. In terms of loli stuff itself, Ui is neutral. Considering her interactions with Kokoro, I'm not too sure where people got the idea that she completely hates it.
Edit: Aviel is throwing around his shekels again. I'm not sure if $1 per 1000 views is a good rate but I guess if you think of it as a bonus to the monetization, it's okay?
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