I don't think it makes sense to say that they are forced by the market to do this to compete with the candy store, when they already know I don't want candy in the first place. Instead, this sort of annoying practice pushes me to leave and visit the organic market instead (Nebula).
I don't think "revealed preference" is the right explanation here either, because these kinds of settings preferences are tailored to an individual account, and I never click on Shorts and always select the "hide" dropdown, so the preference that I have revealed is one that is strongly disinterested in Shorts.
I think the correct explanation is that someone's KPI is attached to increasing Shorts viewership, and they're trying to earn their bonus, even if it's at a cost to the success of the organization as a whole.
That’s a very competitive arena and while you and I may be health conscious - they’re fighting a trench war, you and I don’t matter.