Most social networks have this "growth at all costs" mentality that is usually the root cause of enshittification. When I say 'smaller', I mean it more in terms of fostering a healthy community of dedicated contributors rather than trying to make the fediverse grow as much as possible as fast as possible. This is why I mostly support the notion of preemptively defederating from Threads. While it would help the fediverse 'grow', that's not necessarily what I want out of it. I don't want us to win, I want us to be good.
I think this has done damage to Reddit, but it'll be death by a thousand cuts rather than a big instantaneous failure.
To be honest, I really don't care what happens to Reddit at this point. I'd rather have Kbin be a smaller, more dedicated community than have it "kill Reddit".