Taiwan almost choked, but it is what it is. Despite everything that happened, they still had a solid chance to win the game, especially with a 5 point aggregate lead going into the second game. In fact, if you watched it, you could see that both teams had terrible late game executions. Taiwan almost choked, but unfortunately, Tai Wesley made a god awful turnover at the end which gave the game away.
I don't think Taiwan will become an independent country, especially with how powerful China is now. Even though the US does not formally recognize Taiwan, I think only a small number of countries recognize Taiwan, even Australia does not recognize it. China won't do trade with any country if they recognize Taiwan. With the way the US is handling the situation in Afghanistan, I don't think that they would do much even if China ends up occupying China, which is sad.