this looks more malicious than ignorance or inefficiency. they want to mimic twitter by building off of community then claiming "costs".
fuck reddit. No redditor wanted them to selfhost photos and videos, yet they replaced imgur with their own. Why?
There is some good content on reddit still, if you look hard to find it, but one thing that makes it hard is that reddit blends ads into the content and I think also blends in non-sequitur content that further confuses the reader into looking at and clicking on the ads.
They just can't let reddit clients provide a good, never mind better, experience.
Honestly, this was probably one of the more reasonable features they've added. Having to upload images on an external site added a lot of friction for users, and put Imgur in an awkward spot as well when problematic content was removed from Reddit, but not from Imgur.
Their video player still sucks, though. I'm not sure how they managed to make it so bad.