What I think he meant by "specific desired outcomes" is arbitrary rules that cater to special interest groups rather than universal moral principles. And yes, that _is_ democracy in action, where the only rule is that the majority wins, at the expense of the minority who just lost. Your ">1M users" rule is an example of such arbitrary rule that proves his point.
And I like that idea, a great deal.
Although I have to note that users have given Reddit that content to use, for FREE, and continue to do so. They do this elsewhere too, including sites where they say don’t like the site administration, Twitter, etc…
So I’m not really sure how this plays out.