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We actually would need this for our forum, too. I think people here who've said it's a niche thing are maybe right ... but for those who do use it on vb, it's become part of how we do things.

The most important way we use it at our place is that we have a forum set aside for members to report any concerns they have to us, and for us to deal with conflict with any problem members. In that forum, only the thread starter and our most senior staff members are able to read each thread. It gives us a totally private way to deal with conflict situations - and a place to lock members in to work through those issues, too, if needs be, so that they can't cause problems on the open forum. It also allows for a team of staff to respond to queries and concerns there, rather than just one, if pm's were used instead. We've used this system for years and really wouldn't want to be without it now.