Further, unlike at the outset of reddit, people are now really familiar with how thankless and time-consuming being a moderator is.

I’m not eager to have to manage a bunch of communities. If there’s a community that I wished existed, but I don’t care deeply enough to want to manage it, I’m not going to go out of my way to create it, which leaves the community non-existent. So I think having some ready-made communities from people willing to take on moderation duties is a good thing. Fewer people are willing to make the jump to be a moderator these days, and for good reason.