You are 100% right.
This is a huge update that is putting the focus on advertisers more than the content.
You are also right with your comparison to Digg. Slashdot has been a venerated old school tech website since as long as I can remember using the web (mid 90's), but it's not the only fish in the sea any more. Part of the allure of slashdot is the fact that the UI has remained "relatively" the same since its inception. There have been changes of course, but mostly window dressing. *IF THEY GO THROUGH WITH THIS DESPITE ALL THE NEGATIVE USER FEEDBACK, THEY WILL LOSE THEIR TRAFFIC*.
This is a jarring change, and it seems like a change in philosophy too. Be warned.