Private servers help build communities around the game. There are still private BF1, BF4 servers running that are very popular. I think it is a great idea simply because you can get rid of the cheaters, exploiters and disrespectful players. The communities that I have been a part of have forums where issues are handled. Some of the better communities, the admin had private forums to vote on weather or not a ban was justified or not. So it wasn't just one person being an emperor as you termed it. The banned player would request the ban be lifted just like here on EA forums. The person who banned this player would also have to justify their reason for the ban, either video proof and statistical proof.
The pay to play is usually tied to reserved slots since most of the private servers I have played on were very popular and if you wanted to play then you assisted the owner with money that pays for the server.
"Cheaters"
Yeah, anyone who kills the admin LOL
