Further discussion in the comments of this thread.

https://www.reddit.com/r/ModCoord/comments/14eq8ip/the_entire_rmildlyinteresting_mod_team_has_just/

It was inevitable. If it wasn’t for this it would eventually be for something else. They won’t let this go on much longer, if people don’t toe the line.

Well, this is the answer to your protest.
Reddit isn’t caving, they have admin powers and will remove any dissent they deem necessary.

You can no longer create “your own community” on reddit, you can only rent a small community place, which might get Admin Nuked or taken from you without any notice, whenever an Admin deems this necessary.

The only reasonable answer now is to leave reddit. Seriously.