The wording is double speak and I don't think they've made their minds up yet.
No volunteer will want to work with an org that will boot them off when they need to use an app to make their lives easier to moderate because reddit wants to monetize. Quality will suffer as respectable moderators won't be sticking around.
If reddit was more strategic, they'd build a moderation tool that's just as good to replace Apollo. Then maybe this issue might have been less of a problem -- more importantly, they should have engaged with the moderators in the first place. But I think at the senior management level, they're too focused on monetizing their data which resulted in this knee jerk reaction.