There has been lots of instances of bad quality mods and mod abuse, which I assume will only become a bigger problem in the future. Having embedded community talent leave is never a good thing.
I don't think that's true. The majority of reddit users actually use reddit via third party apps and all those users will be impacted by reddit effectively shutting down all those apps. Anecdotally, I have a bunch of different friends who only use RIF and Apollo to browse reddit and say they won't use reddit anymore once those apps shutdown. They aren't vocal users advocating other people to do the same, they are just normal reddit users with low tolerance for poorly designed mobile ui's.
The estimates I've heard of percent of users who use Reddit via third party apps are 5-10%, so nowhere close to a majority. I wouldn't be surprised if for power users the fraction is much larger though.
As a user of RIF I will be very sad when they shut-down. I'm hoping there's some alternative platform I can spend time on, but it's hard to see myself fully leaving Reddit given the sheer utility of it from an information stand-point.