This sounds like a bad way of saying things. If everyone agrees Reddit isn’t a great company then the optics of saying you pay nothing to host on a platform/company that isn’t that good doesn’t seem user focused etc.
The other persons rationale make perfect sense. Any one can justify anything they want as much as they want, profits still went to Reddit.
I stopped modding Reddit by 2019. My politics evolved. I didn’t think it made sense to provide Reddit with free labor.
Life is not zero sum. You can structure an exchange so that both sides benefit. Many (most?) Reddit mods believe that was the setup, but it’s being lost now.
Maybe the lesson, here, is that private platforms cannot and should not be seen as the "town square" or a place for "community", and that if you make that choice, you need to be ready to move if the platform turns in an unfavourable direction.
Of course, what we're seeing with things like Bluesky is that, unfortunately, for many, that lesson continues to remain unlearned.
The point is Reddit is pocketing profits from you donating your free labour to the benefit of their private platform.
Dress it up however you like, that core fact remains true.