They would take out the dam to create a massive flood with the potential to kill millions of Chinese which live down stream, along with several industrial facilities. This could cause possibly the largest humanitarian disaster in the world and distract the PRA from any war fighting efforts.
Maybe. But that carries with it the risk that if Taiwan is occupied the occupation could be extremely brutal in retribution. I think the top leadership is who really wants this so it may be better to focus on the leaders.