It worked very much as described in that post, and didn't seem to have the problems listed in yours. The biggest problem I remember with CS, was people trying to inappropriately use it to get laid.
The real problem is the same that has been plaguing the web in general - there seems to be no more room for just doing good stuff while trying to break-even or even making a modest profit. Everything has to be a "startup" with the possibility of making its founders millionaires (or more).
I got on the internet in the early/mid 90s when the web was new & for a few years it was mostly non-commercial and ran by enthusiasts and hobbyists acting according to the hacker ethos of sharing, openness, decentralization & world improvement. You could see these principles for years even behind decidedly commercial sites such as craigslist.
It didn't last for long but that's the kind of ideology couch surfing originally started in & it's sad but unsurprising to see where it ended up in.
i should have pointed out that i am speculating.
Maybe they should host first?
hosts will be overwhelmed with requests. many guests will be freeloaders who would be better served with airbnb.
for the site to work, the influx of new members needd to be small enough so that the community csn handle it.
word of mouth is the only way to make sure that new members can get a reference before their first trip.