Earlier quoted context omitted.
In one of Christian's posts, reddit agreed that the price was for the opportunity cost of serving that user without ads - since they're not going to get any ad money from these users (and are unwilling to serve ads to these 3p clients since they probably can't guarantee to advertisers the 3p app isn't doing anything shady like hiding the ad while logging an impression).
Something I've been wondering—why couldn't the API just send a batch of ads to be served with the content? Since the apps need an authorized API key, if they don't cooperate in showing the ads then Reddit could simply threaten revocation. Then users who want "premium" could pay for whatever feature Reddit-side to allow an ad-free experience, or they could even partner with the third party apps to offer it for a cut o…
When you browse on the 1P Reddit app you no longer have a curated feed. It's filled with suggestions ("because you visited /r/place-you-dont-sub-to before posts"). And on top of that, controlling whether the view is condensed or as expanded cards does not affect ads. So you'll get a giant "he gets us" jesus ad that takes up half the screen - and if you do something like report an ad, say it's not for you (in my case, I selected something like "it's offensive"), you'll still get the same giant ad.
The Reddit experience they want me to have is not the Reddit experience I'm used to from the 3P apps, and I think that's why they're trying to kill them off. People that want a curated list of forums and a few memes/gifs aren't driving engagement as much as they'd like, so they tried to clone TikTok. And it sucks, so I'm gone after June 30th.