What I am hearing here is a big entitlement mentality - you feel entitled to have Reddit (a private entity) treat you "fairly" (in your opinion of fair). You feel entitled to get readers and make a site, even though you really don't know how to do so. You feel entitled to build your site with assistance from other sites - at the expense of them having to limit themselves and not take actions that they feel are in their own best interest.
How is Reddit limited by my site? If I submit an article about Bitcoin to the Bitcoin sub-reddit I fail to see who was hurt.
Like I said, if it is a poor article it will get down votes, and not many people will see it. Why do you need a moderator to tell you what to read there?
And I admit I have no idea how to create a Bitcoin news site. That is what I am trying to figure out.
The problem for my site is we have no clue how to get traffic without Reddit... I am open to suggestions.
I think you need to give the readers you have incentive to stay and incentive to attract new readers. There is no advertising technique better than word of mouth. People talk to each other, and they don't just talk on Reddit. (As I said, I don't read Reddit at all.)
As for limiting Reddit, I mean you are wishing that they would limit themselves by refraining from taking an action that is perfectly within their rights to take. They feel that certain rules about URL postings are in their best interests and the best interests of their readers. Apparently many of their readers agree!! There's nothing wrong with wishing they did differently, asking them to do differently, asking other people to support you by also asking them to do differently - but if that's the only plan you've got, I wouldn't hold out a lot of optimism. That's also pretty lame.
Basically you need to educate yourself and learn how to attract readers, rather than relying on Reddit.
In fact, I think you should consider Reddit to be your competition: what have they got that you haven't got? Start supplying that, and then some. Make friends with people who have built high traffic sites, and learn from them.
It is my personal opinion that if you build a good site, people will come, and that people who focus overly hard on promotion of the site rather than building the quality of the site probably don't have a lot of quality there. I'm not always correct, but it has been a good rule of thumb for me.