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Nobody I know of does either around here. I never even heard of it until i saw it on some other thread here a year or two ago. Must be a regional thing.
Paying $5/$1 isn't a game and it's not a club -- it's a tradition. It's spirit of the game. It's good karma. If somebody in your group hits metal or makes an ace, you pay him (or her). It's that simple. The tradition carries on by new players observing older players carry out the tradition. No requirement. No expectation.
We've got a guy here that made some 5-1 tags. If you have it on your bag, you're automatically in. Otherwise you can opt in if you want to. You can remove your tag before a round or not opt in if you don't want to in a particular round. He gave away a few of the tags, and a few players have declined to put them on their bags.
I don't think the game itself is dumb, but I do hate the nagging nag who aces during a tournament round then hounds me for the next hour to pay him so I'll "belong to the club". Just shut up, holy crap.