Though I’m a bit confused why this is even needed. The sort of thing most people want accessible via a link, but only for certain people, tend to already have unpredictable URLs. I’m not sure how
https://gaggledocs.com/documents/aboevdowugwhoaofh
Is different from
https://protectmylink.xyz/owndoavwyagdo + a password
Especially when the original url is still publicly accessible on the internet.
Additionally, you normally have much better authorization options in the app you’re linking to.
I guess you get the benefit of a changeable link, unlike the canonical one? But then a link shortener is almost enough already.
People also used it for selling files and things but as you've said it was trivial to defeat and only filtered out the least technical folks.
It was surprisingly popular.
I would certainly be running URLs through block lists, with a Report Abuse system if I were doing this today.