I'd take a step back, apologize for the Apollo stunt, delay the API pricing by a few months to improve the first party app and, since reddit ultimately does want to kill 3rd parties, offer to buy out the tools and popular apps at some reasonable price (or maybe offer to contract them for whatever changes may be needed to make the tools official).
I think being honest about their goal would've reduced a lot of the backlash. The issue is that they're claiming to be working with the community when it's blatantly obvious that they aren't.
Ideally they'd just go to more reasonable/free API pricing though.
I have had a thought like this as well - the Apollo guy obviously does not make a rich man's salary off his app.
The way he's described things, it seems like he could've done this or that hail mary thing, a quick gofundme round maybe, to see if the Apollo users wanted to get behind the app in order to keep it by providing the six-month cushion that Reddit will not, and see if they can work out a new, still-equitable pricing scheme. My guess is that as an app with a huge userbase and reputation, he probably could have pivoted this into better income, even. But it also looks to me like he's just taken a sober look at things and realized that the nature of the game has changed and he doesn't want to play.
People on here keep saying the mods are deluded, but I think the mods are something much more powerful: disillusioned.
I think being honest about their goal would've reduced a lot of the backlash. The issue is that they're claiming to be working with the community when it's blatantly obvious that they aren't.
Ideally they'd just go to more reasonable/free API pricing though.