A lot of replies or comments here. Sorry if I don't quote specific people.
Patreon will lose money from this, but not a lot. They'd lose a lot more fighting lawsuits or being banned in some countries because of differing laws. Or they'll lose if people organize a boycott against Patreon just because the idea starts to trend on twitter or something.
I think DS will make a better game with Glamour. There are limitations on his ability as a storyteller, but a lot of problems with BB were just that he wasn't into the incest thing, and kept trying to turn it into what he did like. I suspect he'll be able to put more personal passion into Glamour. The downside is that most of the people that support him do so for the incest angle. Glamour could be the best game in the world, but the kinks just don't interest me.
I suspect Patreon knew all along what the Big Brother game was about. It's too high profile not too, especially if they're actively cracking down on incest games. But what they did was make a show of going after lesser "offenders" first and then letting them stay. Maybe they hoped others would change on their own, or see the writing on the wall and leave on their own. This is wave 2, though, where they go after bigger targets that they know they "need" to get rid of.
I don't blame DS for not being terribly interested in some "shady" workarounds to keep BB on Patreon. I expect that Patreon is just going to keep cracking down harder in the future, and as DS said, patches and stuff like that won't fly, either.