Earlier quoted context omitted.
"The solution for this was incredibly simple. Reddit you want to charge for the API? Go right ahead, we all want you to make money. But when the volunteer labor you need in order to function started complaining because this is going to kill the modding tools they need - you should have immediately, like next day, apologized for the oversight and promised free API credits to them until you sort this out." From the AMA…
This entire thing started, as far as I recall, because the above was NOT being done. You're reading misinformation / misdirection.
It's also very predictable who will win the war: whomever has the root keys of the servers and web domains. Major reddits like r/funny are providing very limited value in the grand scheme of things, the vast majority of the content is viral, not locally produced. So if a user is a r/funny subscriber and that goes dark, just present him with content from r/humor for a few months, they will get to see the same viral memes and 95% of the users will never notice anything went wrong.
Mods vastly overestimate their power here and underestimate the number of lurkers that form the backbone of Reddit viewership and are indifferent to this issue.