Yeah, I hope this kind of business never thieves.
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... and people will do it.
As long as Redreader still works, other applications could just borrow the oauth key.
Nope. For one thing borrowing the key would require the apps in question to provide the same accessibility options that allow redreader to be free in the first place. For another reason, it would be pretty obvious if it wasn't red reader because other 3rd party apps for Reddit are differently optimised and offer more features meaning more API hits meaning Reddit themselves would be able to easily tell the difference between redreader app users and other apps using the oauth key. They'd just blacklist those apps/users.
Further this could detrimentally affect redreader, making it harder on users who need those accessibility options. Don't ruin it for them just because Reddit is greedy. This isn't the user's fault.
To be fair, Infinity worked for me for months after the API bullshit went into effect; NSFW and everything. The dev seemed pretty cool in the one or two times I messaged them. It must suck they have to charge now.
Still, screw Reddit. Dropped it like a bad habit... Because it honestly was for me.