Reddit's response about the actions they took against the subreddits (note: r/mildly interesting DID NOT encourage nsfw content and their suspensions and removal have been revoked by a diff admin)
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I can go watch people die in a horrific manner in CombatFootage any day all day
They don't care about the content, 'WatchPeopleDie' was just too on-the-nose for them
It made news after germany banned it, so they've been forced to do something.
That is really the only reason they've done anything in the past about subs. That or the risk of actual legal trouble.
Similar things happened to jailbait and thedonald. Without media attention those subs would probably still be active.