I once had a similar idea, which was rotating pretty expensive Shmup game PCB's amongst members of a certain Dutch forum. The idea didn't fly because people thought that it was too much hassle and too risky because of the fragility of the PCB's (and people could get blamed for damages). I agreed.
And I think that this idea is even more ambitious, and needs good preparation to work. Although the Pro's are clear and already mentioned, the con's also have weight.
Besides, group members:
- have to trust each other completely
- should agree how to behave with the game (to eleiminate damaging risks as much as possible)
- should individually take care for a sufficuent insurance
- have to be found who all like the game
- have to live near each other
- have to write down a set of rules (amongst them what to do if one member, or more, wants to quit)
- should take care for a small fund for necessary repairs or replacements
- etc.
Personally I wouldn't take part in such an arrangement, too much hassle, too much uncertainties, too little playtime (you have the game only 6 months in 2,5 years, for example).
Then I like the idea of an association, with a clubhouse, much more, like the Durch Pinball Association for instance. The Arcade Video Game Association would buy games (from fees, donations, advertising in a club magazine, etc.) and place them in the clubhouse where every member can play them, and maintain them.
But this is also wishfull thinking, I know.