This still uses a single shared secret for the whole group.
I'd say that at this point you can either:
* accept that there is no confidentiality anymore. It's just not realistic to have a "secret" group with that many members
* have the person who adds new members forward them the group key, and give up on key rotation
btw, I'm wondering how treeKEM manages malicious members when key rotation happens
You do have a point, especially when it's a group where people are in their free time. However, if they are present for work they are less likely to leak information. Also, encryption should give a default level of privacy to build on.