Honestly they could cut the api prices a lot and have them still be usable. I could imagine them cutting API prices significantly (although still leaving them kinda high) or otherwise changing API terms like having to include official reddit ads in 3rd party apps.

There's plenty of compromises available at this point that could make the reddit user base feel like "they won" while still being very profitable for reddit. Opening with a ridiculous API price and then compromising to a still high API price could be an effective use of the door in the face technique.