If you listen to the people complaining about cheating... it doesn't.
> I don't care how much of a social butterfly you are, you are not going to get 99 friends to get a PUBG match going.
True, but my county is able to get more than that number of people into a cricket league. You don't need to personally know everyone, just be confident that there is a system of trust in place that would weed out any rotters. Is such a system going to be perfect? No, but neither are any of the top-down approaches attempted in videogames. At least this one doesn't require me to install an umpire in my home at all times.
> As a sibling comment mentioned, even in the days of private servers you ended up with community-developed tools like Punkbuster.
The difference is that you could have played the game without doing that. If you didn't trust the people on that server, how likely would you be to install those tools?