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As someone who was a former waifufag, vtubers in general really do blur the line. IME I think a lot of the hardcore waifufags would not qualify due to a lot of them being used as an avatar for the 3D roommates and not playing an actual character, or they end up abandoning their character as time goes on.
I do believe that Hololive Alternative changes that and would create a loophole of sorts. Like let's say you feel like it wouldn't be right to waifu Ame the streamer. You could however waifu Ame Alternative who is would be a different entity from her streamer version.
I mean it's not uncommon for someone to waifu one particular version of a character after all for whatever reason.
It's all dumb autism either way. Trying to follow the "rules" of waifuism will make you miserable like it did me. I do kinda miss it though