Maybe I'm just a pessimist, but if Reddit doesn't backtrack what's the endgame here? I've seen multiple subs indicate they intend to fully shutdown if the API changes continue, but for the popular ones what's to stop Reddit from just appointing new mods and starting the sub back up?
What tools will those new moderators use? The mods of any decent size subreddit have to use third party tools because the first party ones are apparently garbage. I think a better question is what's Reddit's endgame? Mods of huge subreddits will just capitulate and use Reddit's crappy tools to do their unpaid work? Somehow those subreddits won't be flooded with spam and trolls? People will stick around to look at ads…
Reddit's value lies in what its users provide and post about. This also goes for that data that Reddit (publicly) wants to protect from AI companies. With their change, not only do they screw over its users and communities, but also mess up any valuable future conversation data.