I don't think you're wrong. Digg did not understand the core features that
users valued. They assumed users would stick around through every monetization abuse they threw at them. Users put up with the "power user" bullshit (paid influencers and astroturfing) because the comments tied to those submissions could be worthwhile.
I think digg's fundamental problem was they viewed their user base like a passive audience. It turned out their users were in fact their main attraction. When they ruined the experience for users they left and digg was left with zero value.
