At our folk club we run a monthly session where we encourage the participation of the inexperienced. We do this by making it very clear that we do not want an audience. At the session each person is encouraged but not pressured, in turn, to do a number and ask others to join in or not. It works well and we have seen some people evolve from tentative participants when all are invited to join in to quite confident performers. We have had the odd 'good' player show up and leave because they don't like the beginners. They are likely the ones that go out and start elite sessions.

Back to the original question, "Elite jam sessions? Is it OK?". Yes. There's room for all kinds of sessions and probably a need for each.