[robbiemitchell]

The context is a for-profit company. If a third-party using the API is doing so as a substitute for someone using the ad-supported site, the API will be priced to equal the revenue lost from using the site. If the people switching from UI to API are more valuable than usual, the API will cost more than usual.

If the API is being used to support something new -- i.e., not a replacement for a user on the site, but as a new revenue source -- it will be priced to maximize overall API revenue, or overall revenue as an indirect result of growth supported by the API. (Maybe it's one massive customer using it or 100,000 freemium developers.)

The idea that a company "must" do something doesn't make any sense. And the assertion that the company is harming itself is ultimately something the Board, acting on behalf of shareholders, is responsible for.

(FWIW, I agree Reddit is shooting itself in the foot.)