It basically works like those lenticular cards where you see 1 of 2 images depending on how you hold the card. The barrier diverts one image to the left eye and the other image to the right eye. This means that the 3DS will have a specific sweet spot. Move it out of that sweet spot and you'll get a blurred image.
The games suck, but Jeff and the gang make them soooooo funny. I consider that a subscription well spent. From the looks of it Game Room is scraping the bottom of the barrel. They could only scrape up 4 old ass games this week. The end must be near.
I don't know if you "can" privatise it. Regular mail is shrinking and email is growing. Who would want a piece of that market? You'd have to convince someone that the huge initial expenditure to modernize it would pay off big in the long term.