They could make this a Premium feature, driving more people to Reddit Premium. Users would pay them directly and still get to enjoy 3rd party apps. It could even be used a "age verification" for their new NSFW rules.

They could also continue to allow free access, but send ads (which on reddit look like posts) together with the content. Or even better, change their API terms so apps have to follow some guidelines and show ads to free users... and maybe give apps the option to pay for a clean API too?

And of course, continue to offer and promote their own app, with all the ads and tracking they want to add.

Instead they've picked the worse option for their users. They're killing 3rd party clients and tools used by moderators and communities. Apparently they've even lied about their talks with developers and accused one of blackmailing them...

I understand the need to generate revenue, but they're not handling this well.