While the idea of Reddit failing is a nice one, I don't think it'll realistically happen. The people in charge--and by this I mean the money people, not the degenerate powermods and their enabling admins--have too much invested in offering Reddit (and its valuable userbase) in that IPO that they're hungering for.

With Tumblr serving as a warning of what'll happen when the content control purges in the dubious claim of user "safety" get to be too much--they basically set fire to the site in their efforts to purge anything that they deemed kiddie porn (which, undoubtedly, there was some of)--Reddit's ultimate masters will probably start to clamp down on the crazies at some point. Especially if there's a rising level of pushback on any of the various things that the mods and admins have spent the last few years shoving down everyone's collective throat.