"You need to be a nazi", that's quite a conclusion to make. Any evidence of this actually working?
I worked with Steve Jobs, I couldn't stand him, and I eventually refused to work with Apple. I am sure there are many others who came to the same conclusion. But this didn't stop Apple as a company.
It seems to me that once critical mass is reached, closing registration is a good move. It works for other quality-oriented social sites like Oink too.