I was gifted a Life Membership for my 18th Birthday (2007), I think mainly has a sentimental gift as my parents met through a YHA walking group and we often stayed in them in my childhood.
Until recently they were still involved as volunteers, and from what they've said it's changed a lot from what it used to be. The management are from a hotel background and it is basically run as a budget hotel chain.
You no longer have to make up your own bed. The traditional green bedding has been replaced, at vast expense. The smaller rural hostels have mostly been sold off, or are operated partially or entirely essentially as large holiday homes which can only be booked for exclusive hire by large groups.
I lost my membership card a long time ago, but Hostelling International hostel in the rest of Europe don't seem bothered these days if you are a member or not. Not sure what the YHA policy is on it nowadays. I haven't used a YHA hostel for a long time, though the one opposite St Pancras was very useful for early E* departures.
However for the most part the rise of large numbers of independent backpacker hostels are far more useful for the independent traveller. Hostels in Germany are mainly focused on the school market and are usually large and inconveniently placed. I was at one point the sole guest in the 280 bed Wernigerode Youth Hostel, which has it's own theatre and bowling alley, until 100 school children turned up the following night!