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The 5 guild limit basically killed whatever was left of my old social guild FROOT, because I guess everyone didn't see a tag to a social guild to have much benefit in comparison to a competitive guild. The only ones remaining are majorly those who have quit, or those who are in more than 5 guilds.
The system seems to benefit competitive guilds over social guilds, which is fine.
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Members kill their own guilds, not a system. Those who are loyal will stay in the guild. Lots of guilds are very social, even with the 5 guild limit, you just have to dedicate time to your guild and help it grow by finding the right members and providing a guild experience not easily found in other guilds.
Honestly though, most people just use skype or kik to talk now.