On the accusations --
I suppose the borrowing point of view is the opposite of the lending point of view. Prospoer 1.0 lent to people who were too poor to repay their loans at interest rates that didn't take the risks into account. From the point of view of lenders, this was a disaster.
But from the point of view of borrowers -- particularly those too poor to repay their loans -- it was a good deal. You could get loans nobody else would give you, and at better interest rates. And with cheaper origination fees.
So from the point of view of a poor, high-risk borrower, the current version of Prosper offers a rawer deal than the original version did. Less chance of getting a loan than before, and at higher cost.