[1] Only a week or so ago there was a huge outcry about censorship, which resulted in a lot of negative personal information being posted about the current Reddit CEO. Now we have this.
When she is involved in a AMA it seems to go well. Better than well, actually. When I see that she is helping out I pay more attention due to the fact there is someone helping guide the person in responses.
The AMAs are a big reason I enjoy reddit.
Does Reddit's competition of today have as much reach/popularity as Digg's did when that exodus occurred?
Imgur will probably see among the greatest benefit as Reddit erodes.
With Reddit's approach, you end up creating lots of competitors; given the right context, or given enough time, those competitors will bleed you out. Twitter figured that out with TwitPic et al.