Did the house situation ever lead to problems? When I heard about that, the first thing I said is "that's a lot of trust". You wish everyone would be good people, but it's not always the case.
There were occasionally small issues, but honestly due to how the community was set up, it was usually a tightly knit group of individuals and so most of us knew each other.
I know the friendships I made in the Smash community long outlasted the time I played it, and at least in OH everyone knew each other well.
Plus in terms of theft or whatever, with as many people around as there usually were, most of whom were friends with or knew the houseowner, it would be really hard to get away with stealing stuff.
I know I hosted a few tournaments/housed people without issues.
Honestly it was a pretty cool system. It was very different from the way traditional fighters run tournaments, but it did allow the community to become more tightly knit and friendly than just about any other out there.