That is a very bleak prospect. Let's make sure it doesn't come to that.

You are absolutely right that this won't lead to their collapse. But i would still say that in both reddits and LTT's case, even if the numbers revert back, it will have an affect longterm.

For reddit the content quality has likely gone down and suddenly there is a viable alternative in Lemmy, which might have never gotten the chance to get of the ground otherwise. Within a month Lemmy suddenly has a decent amount of content, some communities have migrated here, and we have a number of high quality apps to choose from.

With LTT i think this does also have the potential to hurt them, even if the subscriber numbers come back up. They've been in a process of rapid expansion for a while now, so merely getting back to those numbers or slightly growing won't cut it. Additionally i think with floatplane and the lab they've been heavily investing into their image as a reputable and trusted company for consumers. Particularly the lab where they've heavily invested. Even if ultimately the average less informed consumer is their target market, for that they will also need enthusiasts to recommend them to those.