I think it's both. Hims doesn't really even do the telemedicine bit all that well, and Hims customers know what they're there for. This is isn't a "by the way" conversation at the end of an annual physical, nor is it a dedicated full-cost office visit to discuss ED, Weight Loss, or Hair Loss. It's a quick website visit, and then maybe 5 minutes zooming with a doctor in another state you will never see again and who will never remember you among the thousands of patients they "see".
There's a lot of shame in society around all of these issues, and it's really appealing to a lot of Men to be able to spend an extra $100-200 to not have to have a conversation that embarrasses them with a Doctor who may know their wife, friends, or otherwise may be part of the community. That's the value proposition of Hims; a $200 fee to maintain the illusion of their inherent virility and masculinity. A lot of Men will happily pay that, and have the disposable income to do so.