One big issue with Reddit is that it is mismanaged. With the revenue they are generating ($456 million USD), it should be more than enough to run a site like Reddit.

Over the last few years they've invested heavily in things that are very unrelated to the core features of the site, such as NFTs and other odd things that are barely visible, while firing people (Victoria & the death of r/IAMA, and snackexchange) that brought a lot of traffic to the site.

If a Reddit competitor were to surface that treated the company not as a facebook competitor // unicorn but rather than a company that is willing to reach a certain size and then stay there, none of this would be problems.