Seems like they're gonna shoot themselves in the foot though. The technologically and sociologically literate users are the ones that are most likely making the best content.
In the long term yes, but that will take a while. For now the current leadership team and investors don't care because they will have cashed out and moved on to something else long before Reddit fully dies. I guarantee Huffman will be gone from Reddit in the next 18 months with a fat pile of cash.