as i understand it, the theory was that it would discourage the undergraduates from hanging out in their rooms, and force them to hang out around campus and socialize, and this would be good for them.
My experience from a long time ago was that dorm rooms were never really a place to hang out. My undergrad had rooms off a kitchen/suite area and people did hang out there. But rooms were mostly for sleeping (etc.), studying, reading, etc.
I would guess that now a lot of college kids stay locked in their rooms by themselves, swiping on their phones and playing video games.