Ultimately, I decided to move. The overwhelming ugliness that has infected Reddit is a hassle that I'd rather not deal with, and that I don't want to be associated with.
Bad users aside, there's also the matter of the warranty canary, rampant guerrilla marketing, bots, and admins messing with the algorithms and UI for monetary reasons.
Circa 2010, I absolutely loved Reddit; I went to meet-ups, modded subs, spoke of narwhals baconing, the whole nine yards. That place is gone now though, and the proof is in the fact that you, an assumingly decent user, has to say ignore the defaults (i.e. the backbone of the site), it's still okay... in certain places! Again, you're on point; there's still no substitute for many its educational, enthusiast, and hobbyist subs, anywhere else online. But, the main decks are flooding with sewage, and many of us want to be clear of the ship, and the waters around it, before the whole thing goes down.
I think Matt's comment was more about the up vote/down vote and how it can be controlled by a group of people.
As for your comment this is the common defense people turn to when defending Reddit. While it's true, Reddit itself doesn't do a good job of showing you how to use it. Logged out users see /r/all which more often than not is filled with advice animals, pics, gifs and (right now) the_donald subs. It comes across really poor. Even if you convert that user there is still not a ton of guidance to finding relevant subs to your interest. There's so many splintered subs (/r/game vs /r/games vs /r/truegaming) that it can be hard to find the one meeting your needs. You can sub to them all, but then you have this massive feed of subs. Some of which you may never see because your front page is being overwhelmed by some of the more popular subs.
I know the site can't scale without moderators but I think giving them so much ownership has resulted in a lot of problems. I'm not sure how else to incentivize them but the amount of power they're given clearly is good at attracting the type of people that it shouldn't (as well as the type of people it should, to be fair).
ETA: I say this as a person who reads Reddit material frequently, but doesn't interact much on it. I don't hate the platform. But I do hate a lot of the people.
I am so blunt because I think reddit in its current form risks doing genuine damage.
And fortunately the loudest people on Reddit end up being the ones that represent it for the general public.
I'd definitely argue that reddit is making the smarter financial choice by not paying its mods and having more of them, but that's not an option that would work for Metafilter.
Which is sort of at the heart of what Matt was talking about with scaling community -- it's not that large is bad or that profit is bad, per se, but if your goal is to have a sense community ethos and some degree of coherence to the spirit of what being a site member means, you have to say no to some of the things that make big userbases and ever-upwards biz growth doable.
MetaFilter's major revenue growth up through 2012 was despite a lack of, not because of, any attempt to chase down big userbase growth. It was a ride on the AdSense wagon during a very big period of growth on that end, while the site maintained a reasonable slow increase of users. Likewise the AdSense crash (and the double whammy we got for the punitive misclassification) wasn't the result of shutting down or reversing user-growth measure. The site strategy of maintaining a community that doesn't grow or change too fast was consistent throughout that long stretch of years, and it's something that means we didn't explode by orders of magnitude but also that, even after a rough period, we also haven't collapsed under the weight of too much growth-chasing overleveraging our resources and debts and so on.
Reddit is a big, complicated topic about which I have lots of thoughts but no real interest in digging in on here or now. But there are some very complicated differences in the implications of what community, userbase, and moderation mean as words and ideas for a site like MetaFilter and a site like Reddit that make casual straight-across comparisons using those words essentially useless. The difference between volunteer and paid moderation is a very good, very big example of that.
I take serious offense to this. I am a moderator on reddit and the communities I help out in are amazing. He paints all of reddit with the same brush but reddit is too large for that -- it's now the 9th largest website in the U.S according to Alexa. Sure, there are some horrible & trash communities. Perhaps there's a lot of them, but there's also a lot of amazing subreddits run by fantastic mods. Reddit is what you make of it - if you subscribe to those shitty subreddits, then your experience will be shitty. If you subscribe to great subreddits, then your experience will be equally great. Reddit is like a snapshot of the internet as a whole; there's the bad, there's some meh, and there's also some amazing content out there. You just have to look for it and tailor your experience for those things.
If reddit is terrible, it's because you're not using reddit correctly. My reddit experience is great.