Confused about the Dreamwidth thing

I kept seeing people on my f-list saying, 'Yay, I have a Dreamwidth account,' and wondered what that was.  After looking into it a bit, I'm still not really sure.  Something like livejournal, except you have to be invited to join.  If you're not invited, you can pay to have an account.  So, it's starting off as exclusive and prestige-oriented with moneymaking on the side?  This a good thing? 

I've never been keen on exclusive prestige-oriented groups (probably from being picked last for the kickball team too many times), and when money is exchanged for goods or services, then it's business, not just fandom.  I really don't get the point of this when there are already so many options on the interwebs.

I gather it comes as a response to restrictions/deletions/terms of service issues on lj?  Dreamwidth is supposed to be open and welcoming of everyone without oppression or censorship (if you're part of the in-group or pay to join)?  But... It is run and populated by human beings, correct?  That means that issues and conflicts and wank *will* arise.  It *will* be restricted according to USA law.  It's unlikely to be a utopia of creative self expression.  There will probably be arguments and schisms and then someone will move on to make the next *real* ideal on-line community. 

I guess yay for the process of forever trying to do it better.  I'm sure wonderful, well-meaning people are working very hard to create something they believe in.  Good on them!   No harshing of squee intended.

I'm not against it, but am very unsure of why I would shell out $ for another account on another on-line community thing.  Maybe I'll see the light.  Never say never...