Yes, it probably could be, if that's all it aspires to be. There's no reason some games can't work this way. Not *all* theater, for example, is meant to be seen by everybody. Not all the shows can be The Producers - some have to be The Vagina Monologues. In much the same way, there's no reason you couldn't have a niche MUSH within the niche of MUSH gaming.
It all depends on your long-term goal for the game: Do you want to tell some fun MASH-inspired stories or build a popular game? If it's the former, I think you can do it with only staff-driven plots. But if you're aiming for popularity, you may need to develop other opportunities for amusement.
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