Unfortunately, it still happens even here on Lemmy. I don’t think we see it as much because most communities here have far fewer mods than adjacent Reddit subs on average, but occasionally you’ll find a mod here who thinks they know better than their community and does whatever they feel like.
I disagree, you can see so much on the old layout specifically because it’s a wall of text. The new layout is unnecessarily bloated and takes up your whole screen on every device you view it from, so you can barely see more than one or two posts at a time. It removes the ability for the user to freely scroll and look at things that interest them, and forces the user’s attention onto exactly what the algorithm wants them to. The new layout removes a ton of agency from the user.