To be clear, they're not banning the app, they're banning ByteDance from having offices in Canada
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ByteDance will keep no data in Canada, will not employ any Canadians, will not report any information to Canadian authorities, and will have no reason to comply with Canadian warrants or court orders. (Or even judgments.) At the same time, all Canadians can continue to use the app.
On balance, this seems bad for Canada and great for ByteDance.
TikTok is still going to collect that data, and it will be kept in China, far beyond Canada's reach. To remove concern over the data, I reckon you'd go about it backwards: Get rid of the app, which is up to no good. Keep the offices, so that they can be spied on or forced into transparency via the courts.