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.
Only if those new mods know what they’re doing. Reddit will run out of people who know what they’re doing very quickly. Filling mod positions with randos isn’t the same as successfully running a community.