Personal information is not required in order to use the sites and it is usually left to the users discretion whether private details are to be revealed, but it is a decision that should not be taken lightly until confidence has been gained in order for protection and security.
Some sites offer webcams, message boards and audio chat as part of their services with some being free to register.
Everyone was talking in the same window and if you wanted to have a private conversation you could invite the person of your interest to chat in a private window. Basically that still happens on a massive scale today.
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An online chat room is basically a go-between for singles to meet potentially like-minded mates in the hope of making friendships and possibly leading to meeting in real life or even a relationship.
Sometimes people find it easier to open up and talk to someone over the Internet or to a random stranger than they do talking to people outside the virtual world and in their real lives.