I don't think you're wrong. Digg did not understand the core features that users valued. They assumed users would stick around through every monetization abuse they threw at them. Users put up with the "power user" bullshit (paid influencers and astroturfing) because the comments tied to those submissions could be worthwhile.
I think digg's fundamental problem was they viewed their user base like a passive audience. It turned out their users were in fact their main attraction. When they ruined the experience for users they left and digg was left with zero value.
Everything passes eventually. Microsoft used to be king of tech, but no longer. Google has been king, but clearly they are on the downhill slide from their peak. Someday AWS will no longer be the prime cloud provider. Someday another phone manufacturer will take Apple’s crown. It is as inevitable as the rising and setting of the sun.
Same way youtube discontinued their discussion platform. One day I had 200 interesting active discussions, the next there was non. Channels that relied on feedback turned into drifting ships.
I think digg's fundamental problem was they viewed their user base like a passive audience. It turned out their users were in fact their main attraction. When they ruined the experience for users they left and digg was left with zero value.