I'm not exactly sure where the 5V comes from... must be regulated down from 12V somewhere... perhaps inside the microcontroller?
DS4 is a zener diode serving as a shunt regulator, RS19 (marked 152) is the resistor that feeds it from the 12V supply. You could certainly use this to drive other circuitry, just know that the maximum current you can consume from it depends entirely on RS19.
Note that there is no (explicit) current limiting here, it's relying on the impedance of the secondary and the resistance of the wire to limit current.
hows about a 9v ac transformer and forget about the chinesium control board
Not a bad idea, but a transformer with sinusoidal output is more likely to produce objectional flicker versus a square wave, because the LEDs will only be on when the transformer output is near its peak. Plus the fact that the frequency drops from 150Hz to 100Hz. Visibility of flicker depends on both frequency and duty cycle. May or may not be a problem, some people are more sensitive to/bothered by it than others.
So... I guessed that the power supply is on one side and the effects on another... measured between the DS3 and DS4 points with lots of dangerous exposed voltages and measured 11.7V
Kinda... One side is the primary side of the switch-mode supply, the other side is the secondary plus the output control. In this case there's not much "secondary" circuitry, just the rectifier (DS3) and bulk cap (CS4).
Replacing the existing MCU with something else that generates a pair of complementary square waves wouldn't be too hard. You could do that with a little 6-pin AVR even, or for an easier path use a
tiny MCU board.