Maybe they can replace mods with new volunteers, but Reddit Admins have also just explicitly shown that mods with valid complaints will get no support, may be libeled, and potentially have an admin-led coup done against them if they don't comply.
This is likely to dissuade folks who are in it for the right reasons and want to do a good job with good tooling and proper care and power hungry weirdos who now know that if they disagree with the Admins, the Admins have shown they can weather any storm and don't care if any user, even powerful mods, disagree with them.
I'm not sure why anyone would decide to be a mod at this point. Before this month, it was a chance to run your own corner of the internet, for better or worse. Now it's been made very clear who actually runs the show, and that those people could not care any less about you.
This is likely to dissuade folks who are in it for the right reasons and want to do a good job with good tooling and proper care and power hungry weirdos who now know that if they disagree with the Admins, the Admins have shown they can weather any storm and don't care if any user, even powerful mods, disagree with them.
I'm not sure why anyone would decide to be a mod at this point. Before this month, it was a chance to run your own corner of the internet, for better or worse. Now it's been made very clear who actually runs the show, and that those people could not care any less about you.