They do, but the difference is I can't go to another reddit instance when they pull shit. It's not flawless, but it certainly changes the power dynamics.

I think the idea here is that if mods are bad on, say, memes@lemmy.ml, everyone can just leave and make memes@sh.itjust.works or wherever. There should be more competition here, at least in theory. Time will tell how well it actually works.