You can still have local groups and private lobbies and not equip gems.
The problem is this game is going to have horrible online even if it's GGPO good thanks to gems being forced.
--
http://i43.photobucket.com/albums/e373/Gaiash/KumaVsZangief.jpg
LOL!!!! I hope that's a joke....names don't get more n00bish than that