I think the key problem with all the theorycrafting in this thread about how Reddit could approach this in a better way is that these better strategies are fundamentally incompatible with whatever is broken in Reddit's management.
People gravitate towards third party apps because they have less ads, and because since they don't mine for data as much as the official app the user experience is more like "classic" Reddit and less like an algorithmic content pipe alla TikTok.
Most of the things that make the official app shit are the things that make it profitable - it just needs to avoid being so shitty as to alienate too many users.