Think this case in particular is pretty interesting. Former default subreddit and one of the largest on the site (Top 20 at least).
I think /r/videos is where we’ll see how things actually play out with the reddit admins. I’m guessing at some point the admins will step in and replace the mods.
I posted a slightly longer comment about this downthread but unlike other websites like twitter, reddit relies on users to be moderators. This is the one site that can’t afford to lose their power users, you can replace them with scabs but the scabs probably don’t know how to moderate a community that large and if enough big community mods quit reddit will never catch up. This is one of the only sites right now where the power users being happy actually does matter more than the average user, because they’re essentially staffing the site for free.