Absolutely. If anything, private torrent trackers and NZB indexers are proof that it works overwhelmingly well.
The few I'm part of all have a real community (like in the net of old), civil conversation, and verified, quality materials being shared. Almost everybody behaves and doesn't abuse the invite system, because nobody wants to lose their access to such a wonderful oasis among the slop web. It's a great motivator to stay decent and follow the rules. When things go bad, it's usually not because of malice, but because someone got their account stolen. Prune the invitee tree and things are mostly under control again.
Entire trees of invitees, going back months and years, are pruned. Mercilessly, indiscriminately, and self-servingly for the few people privileged enough that they are above suspicion. And if you're unlucky to be on the wrong side of it, there's nothing like an appeals process.
>and doesn't abuse the invite system
That's wild.
>When things go bad, it's usually not because of malice,
I never said it was malice. It's because the system itself is pathologically flawed and there's no way to make it work.
Unlike most public trackers which are either dead or on a life-support, member-only and invite-only sites are still kicking.
And you are personally responsible for your invitee