The idea that distillation is a significant contributor to the capabilities of the Chinese models is not true. Kimi K3 came out 2 weeks after Fable and uses a number of novel NN architecture innovations.
That may be true, though Anthropic reported 3.4 million exchanges with Moonshot months before Fable.
Why bother creating hundreds of (presumably paid) accounts and the tooling to create and consume the data if not of tangible value to their core mission?
Because the founding pillars for most of these labs are basically "more data can't hurt" and "no one died from too much data" and "you can never have enough data".