It's all pointless if you think about it too much, but that competition drove a ton of benefits to the school. IFC (Interfraternity counsil) ran most of the school events. Our attendance at official school functions like football games or president speeches was about 30% of attendees, even though 'greek life' was only 4% of the student population.
Over 50% of alumni endowment/donation money was from sorority/fraternity members even though they made up a single digits percentage of graduates since the 60s.
I don't understand why Greek life is attacked so judiciously on HN when it's clearly a net positive to schools and the students that join. Of course it's not for everyone but that's not a reason to vilify it.