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Wouldn't that be worse? I've seen a sub that had close to 5 million members and the new metric showed today 98 000 weekly users. r/gaming had what? 30 millions? Now it's 2.4. This makes it look worse, doesn't it? Or am I missing something?
But I agree with anything else you said.
I assume it's more to push active subs up instead of letting the large empty ones stay on top. It's better to see 90k with corresponding activity vs a 30m ghost town.
Now that you said ghost town... There is this sub I really liked that had around 500 000 members but with close to zero activity, like one or two posts a month and barely any comment. Now, with the changes, last time I checked it said it had less than 1000 active users!
I don't know if this change is good or bad for Reddit, but you can bet it was bad for mods, because they are complaining about those drastic reductions in member counts. I understand that there is no point in counting members if they are long gone, just like it doesn't make sense for a city to count their deceased for a population estimation.
Anyway, as usual mods there complain and complain but won't leave the site. I'm trapped there because of a few niche subs I can't find good replacements for, but I hope all these changes move more people out.