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Thanks for this well-written roundup of what's going on. I think you've hit the nail on the head. I just hope the dev doesn't rack up debt in the time the app is free...
It does seem like Reddit is giving these apps some rope to hang on to.... Whether they'll hang in the bad way remains to be seen.
The instant removal of ads is definitely coming from Reddit. Reddit is already putting on the screws, in a way, preventing these devs from making any ad-revenue in the interrim.
Until the subscription option actually becomes available, the devs will have NO source of income.