The impracticality of this system becomes apparent when you realize that you have to actually PM everyone the password in order to access the thread, when it would make more sense to simply PM everyone the content to begin with.
But consider you want the social/messaging aspect of it, a private Social Group would be much more effective as you can define who you want to be able to view the content, without any passwords. It's done by invitation, and the content can be changed (just like a thread) and comments can be posted freely like a thread.
So this concept doesn't hold up in practical terms, but from a coding perspective would be a lot of work as well.
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