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They’re a game studio, like the makers of the Unreal engine. They can make whatever they want. Id even has its own (old) engine and made many FPSs before Unreal was ever even conceived of.
I believe the thinking is that it will be hard to beat Unreal in head to head competition using their own engine. FPSs are already a poorly differentiated genre with tons of overlap, so its not hard to imagine their game being another “also ran” in a sea of “same old same old” FPS games.
The people that care leave or are forced out. Like it or not, Reddit belongs to a company. If they want to make their thing into a pile of junk, that sucks and is a shame, but its theirs to ruin. Feel free not to take the abuse.
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