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What happened is that Digg died, allowing reddit to thrive for over a decade with no competition. The admins learned from this and have been rolling out their shitty changes bit by bit, instead of all at once like Digg did. Eventually it's all going to collapse. You can't be king forever.
You can be king forever, with consent of the users.
For a long time Reddit was fairly altruistic. I supported them with a subscription, and was proud to be a member. Reddit gold was an amazing way to monetize with the full support of the community.
As things tend to go, eventually the leadership got greedy and began to care more about money than their life's work.
Reddit got to where it is because they did listen to the community and have public support. They've only squandered that in the last few years.
I’d say the downfall started with the AMA fiasco. It was never the same once they fired Victoria.