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We are losing a lot, this new ActivityPup fediverse is exciting but it is like going back a decade for long-term reddit users.
Reddit obviously sucks now and has been like this for years, IMO it was newReddit and its focus on Facebook users that was the biggest event declining quality. What we had slowly eroded and its no longer there, but there were still enough smaller active communities that it could still be a good experience.
We are rebuilding and it is fun and exciting, but we are losing a big part of our lives in the process, we wont have something equal to what we lost for a couple years to come.
I agree, as someone who saw reddit evolve from r/reddit.com to what it is today, it took about 4 years for them to really get to peak old reddit with the introduction of multireddits. Other than that most of the development has been in the third party apps, and really much of that development has been updating the apps to match the evolving OS design language rather than new reddit API endpoints. But we now have the advantage of having a minimum viable product and people with years of experience building and moderating communities.
I used to mainly use niche subs. The default subs are fucked. Same old one liners over and over, getting upvoted to oblivion.