This is a valid critique, and why I originally dropped tiktok after a few brief attempts last year. The trick is that you have to do a little work up front to find videos you like (perhaps they've been crossposted to your Facebook feed or something). Early this year I watched and liked videos from about four completely different tiktok creators that I specifically sought out (because I'd seen one of their videos crossposted to FB), and from then on my FYP has been scary-good at serving up stuff that would appeal to me.
ETA: I basically never see teenagers dancing badly. Those videos exist in a different wing of TikTok from the ones I frequent.
that is probably the main point of all of it - generation change. The tiktok is GenZ. The "teenagers badly dancing" is probably a very meaningful content for them.