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If they grandfather existing subscribers in it might work for a few months or years, and what does the current Reddit leadership care if that community survives longer than they stay at the company. They also might make a few sales with paywalled celebrity IAmA threads. In any case I will watch from the sidelines and enjoy the spectacle 🍿.
Sure, if that's how a really popular subreddit pays it's moderators, it's not unreasonable. We just know that isn't what's going on here.
In addition, it would be unreasonable to expect users of a free service to suddenly start paying for it without an extremely huge value boost which there's been no mention of. If anything engagement will certainly go down, further reducing the value.
Enshitification is inevitable
How about instead of paywalling. They just sort of concrete wall the entire site then leave it there too rot for all of eternity?