I think you're right that putting on a performance is the key. The aesthetics of the video really emphasises its own artificial/constructed nature, which is also a central part of the aesthetic of drag queens/4chan traps.
This video really involves a remarkable number of conspicuous indirections. The frequent cuts draws attention to the fact that we are watching a video. She's lipsyncing instead of singing, she's wearing makeup and a wig and contact lenses and costume, and she is acting out exaggerated emotions which you could not sustain for more than a few seconds at a a time, all drawing attention to the fact that she's acting a role. And the costume she's wearing is of a girl-band idol (a genre which is all about building an artificial image), and Nico in particular is famous for the large gap between her stage persona and the "real" her, except in fact even Nico's real personality is constructed because she's an anime/video game character.
[Insert a paragraph about "precession of simulacra" here.]
Someone on Twitter posted [pic related], which seems pretty accurate. The video makes no pretense of being an accurate depiction of a real person, but we still can't help being entranced by the hologram girl. I was trying to think of what this reminded me of, and eventually realized it was the subplot from William Gibson's _Pattern Recognition_ when they photoshop a "better than real" girl in order to catfish some poor Japanese nerd. But I guess Gibson actually got this wrong; he thought they needed to use deception, while actually nerds on twitter fall in love even/especially with the openly artificial.
