No, it's because things were about to get hard. Previously it was easy, access to reddit's API was free, and he'd hide ads. You could use Apollo for free, or you could pay a flat fee and it went directly to him.
Now, with reddit's API pricing, he can't just charge a one size fits all price, because it varies from user to user, based on how many API calls they're making. Billing users at the end of the month probably isn't a great option here, so he'd have to estimate monthly costs based on paying users, average the cost out, markup for himself, and then set high prices of things. We'd see really fast how much people really love Apollo.
He threw in towel.