I'm sure some people get utility out of it and improve their lives, but there seem to be quite a few people who seem to enjoy it for other reasons.
EDIT: I recall a party where I was forced to play some game where you try to find the spy or something. I kept begging people to choose me as the spy so I could quit. I ended up winning the game after 2 hours. It was miserable.
I've been to a couple AR scenes. It's mostly cultlike leaders breaking down others' boundaries through humiliation rituals like these. If you're enough of a psychopath, you can make your way to the top of the fleecing pyramid, eventually.