Besides being too cheap, it's honestly not even practical. There are about 21,000 active mods on any given day. Replacing even half of that number would increase their current staffing of ~700 by 15 fold which doesn't seem likely given they just laid off 90 of them. That doesn't even touch on the fact that those moderators would know nothing about the subs they're now supposed to be taking care of.

Nah, you're totally right, this is the beginning of the end. The blackout might not do anything short term but they're certainly going to shed enough mods that quality will slip. Once that happens people will be looking for alternatives and Reddit will end up on the scrap heap of "used to be great" like so many that came before.