Ha, that actually depends on who you ask. In the view of mainland Chinese hawks, it’s a positive because this hastens reunification in their mind. In the view of pro-engagement with mainland voters (the 60% of voters in the opposition), it’s no doubt a negative because they have to deal with DPP’s shit economic management and the dread of a possible unfrozen civil war. Western media will think it’s positive because they come to the opposite conclusion as you and think that the goal of independence has strengthened.
Wha-? No, it didn’t. DPP support collapsed because people wanted a non-DPP party but also cared who it was. Why do you think KMT and TPP even agreed on a joint ticket (even though it didn’t come to fruition ultimately), in the first place? TPP’s call was pointless as one of their goals was bringing down DPP. In the end, the votes actually show the KMT made significant gains in the legislature, that isn’t indicative of people wanting a non-KMT party.