Can't tell if the OP is being sarcastic. Just want to point out that "Tik Tok" is the sound an analog clock makes - which is also obsolete technology - except for the odd grandfather clock.
People seem to underestimate how important a name can be. "Instagram Reels", "Reels", "IG Reels"... they have no buzz, they're clunky to say, and like you said, it already implies ancient uncool tech. The marketing people must have been phoning it in when they named this.
I obviously don't speak a generation but I'm in the target demo and I like the name. "Did you see X's reel the other day?" to me feels better than "Did you see X's tiktok the other day?"
I am also in the target demo, do not like the product, but the name sounds pretty good. Like "Have you seen her story?" "Did you see her last reel?" just sounds nice.
The people who launched Reels are probably in their 30s and 40s and working against serious organizational biases that prevent them from innovating. So not surprised that they named this Reels.