Will this undermine most of what makes IAmA special? Probably. But Reddit leadership has all the funds they need to hire people to perform those extra tasks we formerly undertook as volunteer moderators, and we’d be happy to collaborate with them if they choose to do so.
I don’t think people are asking mods to burn the place down as much as they’re asking them to just stop. Stop working for free. Stop trying to negotiate. Don’t work for them and don’t work with them. Move your community elsewhere if you want to keep your moderator status and forget about Reddit.
That’s not radical nor is it a huge workload. It’s less work for most.