There are least two arguments against it being a sham. It is not defrauding anybody, and I suspect we will find that there are not rigorous legal definitions of household servitude.
To address the first, all of those directly involved would hypothetically agree to the arrangement, so they are not defrauding each other. It is not defrauding the neighbors because they are not under any obligation to provide a return on other people’s investment in their own properties.
As for household servants, most any home owner already undertakes the same duties which they would otherwise delegate to others. So they are already cooking, cleaning, and looking after each others children. They don’t need to have special uniforms or other clichéd trappings to make it legally recognized.
I think it sounds equitable, and great fun. Your outlook sounds fairly cynical to me. Whether we like to think of life as being selfishly cocooned or lived in true service to others (as equals) I think is a crucial distinction, and worth working towards.
