>That's an elitist view. It means only the "established" community members
>have a say in who gets to join their group.

The ability to give reputation to other members is based on several factors: your post count, how long you've been a member, and of course your reputation. Although reputation helps, it isn't the only factor driving a member's ability to give reputation. You can see how much reputation a person can alter by looking at their 'rep power'.