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If a single one of those niche subreddits disappears, the site will be fine. So, sure, you can argue they're individually irrelevant to Reddit as a platform, I guess. But Reddit having a vast collection of niche subreddits is what keeps the platform alive. Do you think people would be nearly as engaged in the long term if it was only world news, politics and memes? Those broad categories are going to have the widest appeal but they're not what a lot of people stay for. They stay so they can discuss their favourite TV show, the specific game they're playing right now, the niche hobby they're interested in, the particular celebrity they're weirdly obsessed with, that incredibly specific kind of porn that gets them off.
And there's a reason a lot of people add "reddit" to the end of their Google searches - there are all kinds of niche subreddits with information they're looking for about a particular issue they're having right now. If I'm having issues with my electric garage door, having a high-quality, well-maintained forum dedicated to the subject - filled with experts and knowledgeable enthusiasts - is exactly what I need, and Reddit had that.
Memes might have a broader appeal and be more monetisable right now, but losing all the niche subfora is something that will hurt Reddit in the long term.
Imagine the website being famous for its niche information becomes the place with “only bad information on it”
God it’s almost like he did this shit on purpose.