I agree this is likely, which will extend the negative reactions further and alienate even more users. Unless Reddit execs do a 180 in the very near future I think the platform will be forever crippled.
Large networks rarely die overnight and whatever happens they will still have a number of users for the foreseeable future, but the steady fade to irrelevance will begin in earnest.
Power users drive a huge amount of content and moderation, and they are especially livid right now for good reason.