Earlier quoted context omitted.
Custom lobbies don't meet the same need. That's for playing with your friends, or at least, people you vet yourself. Community servers are a sub-community in of themselves: people tend to play on the same servers on a regular basis, allowing you to build rapport, community norms, and have substantially more direct moderation than company-run servers. Yes, sometimes you run into power-tripping moderators. That comes w…
two or three months ago, I played a game that did exactly what you proposed, V-Rising, it have a server browser, I played a week with friend on a busy server. Then the server was gone for two weeks. When it was back, mosts of the bases were gone due to inactivity. That's the kind of things that were common too, maybe you forgot about it.
My negative experiences with community servers represent a pretty short list. Sometimes servers die, but games die sometimes, too. That's obviously only an issue with persistent-state games, like Minecraft, but it's unfortunate when it happens. Can't say it was so frequent that it impacted my enjoyment of any games as a whole.