I think what will happen is that a lot of the subs are eventually going to end up in the hands of the few mods who love sucking up to the admins and the mods who are in it for the dopamine they gain power-tripping instead of the mods who are in it to make the subreddit the best version of itself.
This will only further the "5 Mods Control 92 Of The Top 500 Subs" issue and lead to overall less happy, less engaged users.
I found it interesting that after such a depressing bullet-point summary of their meeting, the last paragraph was still mixed and not more negative. I wonder if they actively try to stay on Reddit's good side to not end up in Reddit's crosshairs or if that's truly how they feel.