Apologies, not trying to throw shade at the other groups, just going by what’s written in the round-up in the other thread (Master List of Book Clubs). Fully agree with you that the JLPT is of limited usefulness for assessing aptitude, but I think it’s a reasonable heuristic for what is just a head-count at this stage.
You could be right that ‘Literarure Club’ is a better moniker - I only worry that it can sound a little self-important and leaves people unsure about what ‘counts’ as literature.