I don't think the intentions are that sinister. I am pretty this entire mess of BS is about killing 3rd party apps and to get everyone using the shitty official app (which is full of ads and has a crap interface).
Yeah, the official app is garbage. There are people running pihole that have discovered just how outrageous the official app is in making tracking calls (thousands of calls).
The mods are claiming that they need the unofficial apps for modding itself and that with this move they are severely hampered, thus we can expect a lot more bots/porn/bad actors, etc...
Another issue, I think, is that Reddit itself has served as a study field basically for AI programs run by companies such as Microsoft and Google. Reddit wants to see the money, especially as they plan on going public rather soon.
Regardless, we shall see how they handle the incoming propaganda efforts and they will come. Looking to Elon Musk as a role model has me all sorts of squicked out. At the very minimum I think we'll see their laissez-faire attitude continue in regards to bots ran by foreign actors. It gets more people to the site and they're fine with that. I don't feel like any of these techbros has the slightest bit of social conscience. They don't care if their sites are used to undercut democracy, topple governments, foment disinformation, etc...as long as it leads to more eyes viewing it and money.
After all, he has his bunker and pile of money, and believes he will be a leader, not a slave if and when society collapses.

Sure, dude.
Fixed Laissez-faire typo