The problem with that is then you end up with the same horrible mess of event handlers all mutating global shared state. That's the same problem you have in most C# and Java UI programmes too.
yes, "They simply handle events and remove/add/update the specific DOM nodes that are appropriate." is intended as a clarification as to why DOM updates in this style are FAST. I am not intending with that statement for it to serve any purposes about code clarity or structure. (Which i think is clear in the context of what I wrote in the same paragraph, and what I am responding to.)
I am specifically responding to this:
The "shadow DOM" at the root of React is quite central to its appeal, as it speeds up DOM changes by several orders of magnitude."
Of course you can take isolated sentences from me and purport alternate motivations (code clarity) to them so that you can make a new argument against that alternate motivation, but that is a different conversation.