Will a chunk of users stay off the site permanently? Maybe. Will Reddit as a business be better off without these users? Also maybe. There's definitely a case to be made that the community would benefit from more casual participation minus power tripping and over moderation from the top 0.01%.
I bet most views at this point are just the generic popular view, not driven by a subscription to a sub.
Split old.reddit off into an "old school" version that has 3rd party apps, but needs a subscription to access. Then keep new reddit as their tiktok Instagram clone.