It makes sense if the mobile app provides more "monetizable" users. Shift everyone to the mobile app (or try to) and juice those numbers for advertisers and provide better revenue numbers for the IPO.
Unlike the API change though, I think they do risk losing users with this who still see ads and provide some return.
But that comes at the great long term expense of alienating some of Reddit's most prolific users.
I know what they are thinking, but (setting aside the whole enshittification thing) it makes me sad to see yet another long term sacrifice for some quick profit. It makes me not want to invest in them.
Unlike the API change though, I think they do risk losing users with this who still see ads and provide some return.