The RedReader app has been given accessibility status by the graciousness of reddit and will not have to shut down. The dev is not particularly happy about how fellow devs were treated though and still plans on adding lemmy in future. Read the announcement here
From what I understand, even paid use of the API prohibits 3rd party ads under the new terms. So that $20M/year they wanted to charge Apollo? Yeah it also meant /u/iamthatis couldn’t serve ads on top of that.