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No, you're missing the point. Substandard writing will not be distributed. That's the idea behind managed distribution, and perhaps managed is the wrong term if you think you need to spend a great deal of time on it. You write a system so that the players 'manage' the distribution of the content according to your rules.
Also, who's to say what's substandard and what's not? If you want to write everything yourself, fine. If you want to write with a team where everyone writes to the same standard, fine again. But there's nothing that says a player-generated world must result in 'a lot' of really bad writing. You're looking at the situation too simply.
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