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I think they were completely within reason to take down the subreddits in question. Reddit has always had a standing policy to protect privacy, by preventing personal images from being shared without consent. Problem is it's impossible to enforce this policy and allow 90% of NSFW subreddits to function.

I agree that the DMCA stuff was not relevant to their reasoning, I have no idea why they even felt they needed to bring it up, if anything it supports the argument that policies will only be enforced under threat of legal action.