Reddit users have Reddit to lose. A site that gives them hours of entertainment, allows them to access support groups, find out tips and tricks, get advice, and much more. It'll cost tens of millions a month to host another. Who has that?
VCs will get their money one way or another. Either they get their way with this and monetise users who previously were not monetised. Or they make profit other ways.
> and burning the 3rd party moderation
This here shows how out of touch you are with the reality of things. Third party moderation tools are staying. They're beneficial to Reddit, of course they're going to keep giving them free access.