Funny how polarizing it is. The elitism, faux secrecy and utter pointlessness of this just ticks me off (along with the other criticism mentioned in the article), but some people, including the author, seem to gobble this up like candy.
It's a power fantasy. There's an "in group" and through various mechanisms, it's perceived to be a concentration of power. Some people want to be on the right side of the line, while others actively distrust any organization that advertises the power fantasy behind a hidden agenda, or think it's childish, or both.
My view is that there's no harm in indulging this power fantasy if it's just a game, but when you try to merge it into your everyday life, you're playing with fire. Secrecy begets exclusivity and intentional power imbalance, and society as a whole needs less of both.
I am a huge cynic and probably one of the first people to agree with a post like yours, but I really have to disagree. I saw very little power dynamic going on from what I read. There was a level of mysteriousness in that some people knew a lot more than others, but seemingly a large part of this project was experiencing the discovery and exploration of the project. Hence the reason when the author asked a ton of questions, the guy replied "I could tell you, but do you really want to know?".
It was seemingly a large art project. Some people were "in the know" because projects like this require the full time work of several people. You exclude as many people as possible because it ruins the illusion that people enjoy. Your post may as well criticize Disney World for being a power fantasy because they don't allow park visitors behind the scenes.
"I requested that they deactivate my membership. But when I left, I became a security risk. People I knew made vague threats that I would regret leaving or talking about it. A roommate of mine stopped telling me where he was going when he left the house. Friends whom I trusted contacted me and played stupid about their own involvement in order to suss out what I knew."
That's an unconfirmed third hand story by someone who was obviously way too emotional about the equivalent of being kicked out of their D&D group. I would guess his/her friends ignored him/her because he/she was acting childish. What roommate ALWAYS tells the other where they're going? Especially if they started asking in a suspicious way? Or maybe the roommate stopped telling because he knew it was sensitive subject.
Frankly the way that account is told more than explains why people were distancing themselves from him or her. (S)he sounds crazy.
Without the context of what the community was like, I can see how some people might feel this way. I know nothing other than what I read in the article, but I think there is a lot of details left out about the people, activities, and ideology behind the project. It's not really any more lame than people playing D&D, but I can see how the less whimsical people of the world would call people roleplaying as elves and orcs to be lame.
You have to admit, though, that being handed a mysterious invitation by someone who refuses to tell you more is the closest thing you'll ever have in real life to getting your acceptance letter to Hogwarts. Even capturing a small amount of that magic and excitement is pretty cool, if you ask me.