Yup. And before this there was digg.com, a site similar to reddit, which fell much quicker and more spectacularly because it didn't have the subreddit/sub system, and reddit learned from it but is basically going down the same route.

This was the straw that broke the camel's back for digg, it's an interesting read: https://en.wikipedia.org/wiki/AACS_encryption_key_controversy

That and the site redesign they pushed that hid advertisements as real content, all 3 of those redesigns triggered exoduses from digg to reddit. Which is basically what reddit is doing now, and people are starting to leave