J I don't not think this site is all the cause of problems with your site.
What killed you site is stalkers and stupid people.
Stalkers: The world is a scary place. You need to be very carful what information you give out. It is possible some people at WW gave out a little to much info and made it easier for stalkers. Not there fault but you just need to be careful. You can never stop all the crazy people out there.
Stupid people: Have a girl you know sign up to WW and go on cam. What is the first thing you will see in the chat? open boobs/Show tits. I went on cam a few times long ago and I was always fully dressed. And I would get asked to show stuff to and I am a guy. It did get old I would just kick the person out right way but still.
I am one of them weird people. Like I have said here before I like to see Ann do the topless/naked hula. I like to look at pretty women if they show more that is good too. I really liked when Anna (sleeping cam) would do her teasing on cam. A lot of the time she never really showed anything but it was sexy. Plus other women that showed or teased.
But I also like to chat with people. I use to go to Craftmaster site a lot. I even chatted with Ann there. Mike/Craftmaster was very protective of her. If she was there and anyone said anything remotely stupid he would kick them. His page was interesting it was neat to see him make something out of nothing. I chatted with Penny on the weekends nights sometimes too. She had her band of regulars but if you were not stupid you could join in. Talk about showing hair cool or her cat always licking but in front of cam cool. Ask about boobs = GONE. Butterfly/Lura was another one. It was interesting to talk to her and see other countries options on thing. I know we talked about Obama election once. Charlotte was another one that would chat. She did not show but was sexy and funny.
I have talked to other to. It is fun talking to people from other countries and learn things.
Most of these people have left for one reason or another. Now Craftsman is back, Penny is back sometime. (kicks a lot) but most places that there are chats are gone.
I believe the rules changes did hurt WW. When you had to be on cam or elite to chat that sucked and was when I stopped chatting. If I was on cam it would slow my computer to much. I know why change was made. This was so people did not join and the first thing out of there mouth was show or do this. But I think it hurt the site more than anything.
Maybe your new change invite only will help the site. The problem is how will new people find the site? If I knew how to "fix" the problem I would start my own site :)