This is less about ad revenue than it is jealousy over closed communities like Instagram and tiktok where you are locked into their app.
Right now they are sticking their head in the sand, middle finger in the air and daring people to leave. Poor community relations and messaging for a community based website.
They made their bed by accepting VC money. There is more than one way to skin a cat and I think they choose poorly.
I don't see the point.
Everything you can do on the web I guess.
They want to completely control the experience, so they an extract as much user data as possible to drive ads.
So long as user's are in 3rd party apps those 3rd parties control the relationship, which Reddit has deemed is unacceptable.
It might have stuck a chord with some users, but I think overall it would have been net positive for Reddit and the narrative from leadership much more palatable