And when they opted to actively break large parts of Reddit by deleting nsfw images I kinda new the party is over even in its very tangential utility role
They community is also extremely naive about everything. I tried to follow their little revolt, and they are absolutely oblivious to the fact that running Imgur is probably crazy expensive and that they, as a community, is pretty much impossible to monetize. Almost regardless of how MediaLab was going to attempt to turn a profit, the community would act out in anger. I'm not suggesting that MediaLab handled everything correct, but I also believe that they are running out of options, you can't monetize Imgur without destroying the community.