Reddit always felt like a place to take from since it got lots of people by being centralized, but not really a place to contribute to unless you were contributing to the group think aspect of the community.
Communities specifically set up for answering questions or R&D were in my opinion the only valuable communities. Figuring out things or learning from the huge number of users was helpful, but it was never a fun place to just talk about any of my interests.
This is a fairly classic case of "you aren't the customer, you're the product", but that isn't the only way capitalism works.
This is capitalism and greed and disdain for the user.
I don't know if that will kill or materially damage reddit, but that combo kills plenty of regular businesses. (Salient difference is probably that user != customer, as with many internet businesses.)
So no, the problem really is greed, and the extreme resistance to regulation in the US.