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I agree with your first paragraph, and once we instituted a traditional hierarchy of responsibility in the form of editors and publishers with defined timetables and expectations, things ran more smoothly - the effort lasted 12 years in all before closing.
However, the amount of management and moderation involved from those placed at the top was far greater than in a comparable corporate structure, in large part due to the human behavior factors I addressed above. This led to burnout, and which had a cascading effect on those with less responsibility. While I don't regret what we accomplished, I've come to the conclusion it would have been undoubtedly easier to succeed in the publishing space with a corporate structure.
As such, I disagree with your assumption in the latter half of your comment that a co-op can take in any worker irrespective of ethic. A co-op thrives because it's a community that relies on each other. When you introduce bad actors into the mix, who are benefiting without contribution, it breeds resentment and similar behavior if not corrected quickly - especially if you're working on a profit-share basis. My experience in both the non-profit and corporate worlds has shown that the latter can absorb a much higher ratio of these bad actors than a co-op or non-profit can, as these latter organizations rely on an equitable social contract to motivate their workforce. Corporations just rely on a paycheck.
I appreciate your practical perspective vs the armchair philosophy on the matter. My company is private for-profit, but with a very loose heirarchy and a small team. None of us except the founders even own any of the company, but we are well paid and well taken care of with generous insurance and bonuses, and regular raises. Most of us appreciate that and work hard so the company can succeed - and we all get to keep working here. However we've had a few people who really didn't pull their weight, and it does indeed breed resentment and detachment which only gets worse if nothing is done to correct it. If they hadn't been let go, the damage to our culture could have sunk us.