Your $range widget is saving the input in the text field of the tiddler named “displayheight”, but your CSS is referring to {{!!displayheight}}, which is the “displayheight” field of the current tiddler. Also, the CSS needs to specify the units (e.g., “px”). You can also omit “!important”, as it is not needed.
I notice that there is a strange erroneous “!important: ;” attribute defined for the .tc-scrollable-demo class, even though your <style>...</style> no longer has “!important” specified. This suggests to me that perhaps you might have another <style>...</style> being applied from somewhere else that is masking your most recent changes.