I don't see it as being especially unfriendly to newbies. Perhaps a bit nerve-wracking, but "Bring something cool to show on your first meeting. And make sure it's actually cool. We'll ask lots of questions" seems like it may actually be fun. And IMO, it would definitely help keep a good atmosphere with interesting hacks alive.

You'd need to be careful to prevent people from being assholes to the noobs, and prevent things from degenerating into hazing. However, if it's done right with care to keep things polite, this could be a demanding, challenging, and therefore fun experience.

Anyone interested in starting one up in the Greater Toronto Area? =P

Edit: Clarify things a bit