I can see the feeling of trying to bang a "square peg through a round hole" with this. I think it's a reflection of the general tension between social networking as a "public square," and the privacy-centered values of a lot of bitcoiners.
One thought I had is that this is reflective of the "blockchain without Bitcoin" arguments from ~10 years ago. Everyone thought "hey this Blockchain thing is great, but can we do that without all of this messy Austrian monetary stuff?" So people started trying to put all kinds of things on a "blockchain", property titles, shipping manifests, etc.
As it turns out, most of that stuff was just better on an SQL database. The key was that there was no actual need for decentralization, and the inherent slow-down associated with proof of work (even PoS).
I wonder if that's the case here. Private groups are something that only needs one server and one centralization authentication model.