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.
I'm not sure I follow (maybe there's other details you know about that aren't in the article, or I missed it). I don't think there's anything preventing a Canadian company from paying a foreign company for ads? In theory I'd have to self-assess PST maybe but I order stuff (both physical and digital) from foreign companies with no Canadian presence on a pretty regular basis.