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For some context, in terms of domestic politics, the DPP is a relatively leftist party, or at the very least centre-left. The KMT is classic conservatism, and the TPP is...weird. "Populist" is probably the best description.
DPP is pro-independence, while KMT is historically pro-unification. Lately, KMT has softened on that a lot, and is instead more in favour of maintaining the status quo while warming diplomatic and trade relations with China. The KMT candidate came from the less-pro-China wing of his party.
It's worth noting that even the DPP isn't calling for an announcement of independence. The former President had said that such wasn't necessary, because Taiwan is already functionally independent. Plus, making an official announcement would unnecessarily antagonise China. One of the most common critiques of the DPP, in fact (even from people who are in principle pro-independence) is that DPP has already been unnecessarily provocative towards China. They're worried this may increase the likelihood of China making more serious aggressive moves in the future.
The Taiwanese Presidential elections run on First Past the Post. In other words, it's not really democracy. It's a farce, just like American elections. However unlike American elections, there are three very significant candidates in this election. The winner has, as a result, achieved just 40% of the vote. Apparently TPP voters would almost certainly have preferred KMT over DPP (at a ratio my source confidently asserts would be 3:1), meaning that in a better electoral system, KMT would have won: roughly 54% to 46% two-candidate-preferred.
I've not read the linked article (because eww MSN), but this comes from three main sources. One is the Wikipedia page for each party. A second is a video about this election entitled "How Will China React to Taiwan's Election?" (it should be on YouTube, but I watched on Nebula). The third and most important is word-of-mouth from a couple of very good friends of mine who are Taiwanese and who, despite being anti-CCP, are extremely upset at this outcome.
Personally, unlike my friends, if I were Taiwanese, I suspect I'd have voted DPP. Nevertheless, this should not be considered a win for democracy. It's a win by my preferred party that would not have been a win under a not-shit voting system.
Because uncle Sam doesn’t like that. The last president who tried to make things go that way soured US - Taiwan relationship quite badly. Tsai and the DPP now play it safe by maintaining the status quo - don’t say the bad word that starts with i, and everybody’s happy, maybe except China.
And I, at least, agree with Uncle Sam there. Do we really want WWIII over a stupid symbolic declaration?