To be fair to reddit, they're doomed either way. A lot of the subreddits that have been banned haven't been banned because of their content but because they were involved in doxing people. Some examples include /r/incels and /r/altright. There are subreddits remaining that most people would consider distasteful and maybe even bannable like /r/watchpeopledie that stay because they follow the rules. I agree with your points though.