It's effectively the same as cutting it off for third party apps. No small-time app developer has 20 million lying around.
They're trying to profit as much as possible from the AI companies that want to scrape user data, and throwing the baby out with the bathwater. Killing third party apps are just a nice side benefit as they can get more eyeballs on ads.
Wallpaper board. Even if you don't use reddit, you likely went there for wallpapers.
Emulation and console hacking. If these become main discussion points on lemmy, less will go to reddit first for the info. Same for crypto. Same for Linux enthusiasts, knife collectors, car nuts.
We need that instant "I'm sure Lemmy would know" mindset that we already have with reddit.
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