The bits are too short to get really funny.
Sometimes, they were quite good - but it's hard to go from a cold open to hysteria in <2 minutes.
It's impressive if you can even get most people to laugh in that short of time.
However, censoring a sentence like "thinking about making a joke about how transgender people are ruining the fabric of society" is very thought-police. In itself, it says nothing, and certainly cannot be seen as hate speech.
I think most people who understand the context of the clip (AI-generated Seinfeld) — even if, like me, their hackles rise at any kind of possibly-transphobic material - would think this was pretty tame/kinda funny.
Well, it either had to be mass-reported or spread online as a hate incident. I think Twitch mostly over-reacts to those.