It can go one of a few ways.
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Apart from the few subs that remain offline, it'll basically be back to normal. Those that do remain offline indefinitely just get forcibly reopened or recreated by admins, especially huge subreddits like /r/videos. Smaller ones just get redicted to /r/topicnew or some other creative name.
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A lot of subreddits and more importantly moderators and users leave the site permanently. In order for this to happen however, there'd have to be a consensus alternative, which there isn't ATM. Otherwise, these communities are pretty much lost forever unless the mods put a message to go to X alternative service in the "subreddit is private" banner. Tbh, I don't think people are gonna stomach losing years of their lives in an instant so they'll just re create subreddits unless the mods provide an alternative.
No matter what though, they're not backing down on the effective removal of the API (still leaving the sneaky clause "you can pay us if you want but it'll be a king's ransom" for AI, even though they can just trawl the web manually lol). They'll probably announce some crappy customization features to hoodwink those who don't know what an API is and lie to them and say it's "API v2" or whatever.
I just honestly don't know how it's going to shake out and I'm scared im going to lose these communities. I don't give a single solitary fuck about Reddit the company anymore, and I never did really. I just hope all of the subreddits find a new home and don't just shrug their shoulders and say "welp, guess that's it guys".
I think the mod tools are what will blow reddit up ultimately. It's why I'm here.
The third party apps are a hard self own, but I don't use reddit because of third party apps. I use third party apps because the reddit official app is... Special. If they'd forced me to sue their app I would be annoyed, but still interested in reddit.
If you destroy the key tools that enable volunteer moderators to manage communities, the community will die. Example: two of my favorite subs were legaladvice, and bestoflegaladvice. Both required extensive moderating to function (and even then, it was prone to shit shows particularly at LA). No mod tools would make it unmoderatable... Which turns you into Voat pretty fast.
So, I don't think reddit dies July 1. I think reddit spends the next year turning into Twitter, and lemmy has to run as fast as it can to scale.
Hopefully, this is my last post on lemmy talking about reddit, but I doubt I'm that lucky.