The “only visible in home country” clause does seem to support TikTok’s claim that they were doing it for the hidden users benefit. It’s hard to say whether or not the policy has a net positive or negative effect.

If you browse the recommended posts page on the app, it’s pretty much guaranteed that you’ll see someone who falls under the named categories from the article (queer, fat, disabled). They’re almost always showered with support and positivity in the comment sections.