I know what you mean here; whether or not the site has enough readers, rather than writers, is a big deal because if it's just a bunch of authors fraternizing then it isn't useful for helping new people discover your work. However, one big positive sign is that the popular story Salvos, which was just added yesterday, already has 200+ votes. How many of those readers voted and then looked to see the other cool stories on the list? Hard to say so far, but we will see soon. 200 votes for the top story is a huge decline from the olden days (the #1 story used to have thousands of votes), but it's also only been a couple days.
This is the issue that we don't quite know about yet. The site used to have an active community of voters, just like top Web Comics (which tends to be VERY helpful the people who use it), but since the hiatus it has declined by something like 90% or more based on the votes for the top story. However, I can at least say that my stories have gotten referrals from Top Web Fiction in the past couple days, which I hadn't seen in a long time for the stories that were on for a long time. So at least SOME people are already using the site for its intended purpose! I'm optimistic.
For this one, Top Web Fiction is not a hosting site on its own; it's an aggregator that basically unites all those sites together, plus stories on their own websites as well; you'll see stories from Royal Road, Wattpad, Scribble Hub, Tapas, Quotev, and any of that stuff, as long as enough people spread it around.
Now, the account thing is still annoying, but that's to prevent spambots, so it makes sense.
I don't know how the site will turn, but I'm gonna be optimistic about it, and also help Tapas users to use it if they want! (But I only get 5 invites per day so it'll be a bit slow
)