My 2c worth.
In my second LMS (#1 being First Class and #2 being homegrown) we had a 'One page wiki'. In other words, just one page that a group of students could edit. Most of the time this is all that is needed for student project. Wiki as it is in Moodle is just bit clunky.
So the work round we use is a bit dubious:
- Set up the pages
- Change permissions to give students editing rights for just that page.
Never had any problems