More power to the protest, but I am skeptical that it will do much good. I think reddit has strayed so far from its original mission and values that today it is nothing like the platform the reddit founders originally envisioned.
I think the reddit executives have probably already run the numbers on this and don't care if every single user & mod who uses 3rd party apps and the API walks away from their platform. At this point they only care about the IPO and what they need to do to increase shareholder value after the IPO.
They may even see the exodus as a positive. They may think of these power users and API-utilizing mods as a drag on their bandwidth and worse, they are users who seldom if ever see any ads and increase their ad-viewing numbers.
Will the quality of reddit content suffer? I think it very likely will. It's already been going downhill for a while now.
However, the executives mostly don't care about content quality, either. As long as the free content they get from their users doesn't stray into illegal and controversial waters, they are happy. If the content is mediocre memes and cat photos, they are quite happy with that. The goal is to serve as many ads up to as many users per hour as possible. They are banking on millions of "casuals" to stick around and scroll through the content and see those ads. Content quality is way down the list of their concerns.
My guess is the suits are are no longer interested in an "engagement" platform in the same way that Twitter and Facebook try to be (in their own ham-fisted and evil social-engineering ways). At this stage of the game, reddit just wants to be a mindless app that bored people can scroll while in the doctor's waiting room, the airport, in the bathroom, or wherever they are and need to kill time.
Have the reddit suits made a miscalculation here? Will the exodus make reddit another "not cool anymore" type of platform like Digg that almost everyone abandons? Will the mass exodus only leave bots and karma farmers behind to talk to each other? Maybe, I don't know. It's hard to predict that kind of thing. But I think the execs are willing to roll the dice on this because short-term profits are all they care about since they will be going public. If the bots and karma farmers fool the people buying ads, reddit will just roll with that.
(You'd hope anyone buying ads on reddit would check to make sure their investment is actually increasing their sales...but there's a lot of poorly managed businesses out there).
Either way....for those of us who enjoyed old reddit (and Digg before that, and Usenet before that) I think the path forward is a new platform such as this one.