This is what drives the most eyeballs to ads though. Reddit simply wants to be like Instagram with memes, not an actual text-based discussion forum.
This is likely to dissuade folks who are in it for the right reasons and want to do a good job with good tooling and proper care and power hungry weirdos who now know that if they disagree with the Admins, the Admins have shown they can weather any storm and don't care if any user, even powerful mods, disagree with them.
I'm not sure why anyone would decide to be a mod at this point. Before this month, it was a chance to run your own corner of the internet, for better or worse. Now it's been made very clear who actually runs the show, and that those people could not care any less about you.
Antagonizing a large swathe of your volunteer-base of active mods all at once and then replacing them with new mods who seem fine with that antagonistic behavior is not going to select for the same group of people.