You downloaded it to an isolated environment and ran it and proved it didn't cause unexpected side effects. It was run behind a firewall that could log internet communication. If it proved to be good, you ran it in your main environment. If it proved to be bad you warned everyone who would listen to you.
I feel like the more "social" the web appears to be becoming, the less social it actually is. We had tight little BBS and IRC communities where this stuff was all discussed. Social meant we actually had meaningful conversations... okay, not always meaningful, but it was often about the pursuit of something useful.
It's nigh on impossible with the proliferation of the internet to take this approach these days. Things just didn't scale that well. This is why things like DD-WRT and other hacker sites while being more accessible are still very much a niche market.
It's funny how much more technical you had to be back then just to get online. It's as if we're driving the automatic version of the internet now. Back then we had cobble all the pieces together and even when you had, it was like driving with a manual gearshift.