He's smart in that Phase is specifically covering the costs for the vendors, it's an easy PR move that gets their name out there while not coming across as too politically-charged since it's a bunch of independent businesses owned by vtuber fans who directly benefit, rather than the SJWs who want to murder pink rabbit and cherry fox.
On a personal level I wish Phase would stop supporting OffKai in general since it's the only way the problem will get sorted. I want these people to be punished for their petty malice; they're not gonna change anything if they're still getting rewarded for it year after year. It's just that realistically, low-effort PR is probably too good for the fishfag to pass up, and if I remove my own personal feelings from the situation, I get it.