The problem is how you define a fraternity. The definition of a fraternity is "a group of people sharing a common profession or interests." In the article they mentioned banning "social clubs". So, does it mean that you could now get punished by the administration for getting together on Wednesdays to play Magic: The Gathering? Because that would be a social club (and also a fraternity though they don't call themselves that). Or, could you have a fraternity as long as you don't have public parties or events (so it is no longer a "social club")?
Essentially, a fraternity or sorority is just a group of people who share interests and get together to pool resources to make more effective use of those resources. This generally means sharing lodging, putting on social events (public parties or events), and interpersonal events (private parties or events). Depending on the interests of the group of people involved, that can involve hazing and binge drinking, or it could not.
I actually in a fraternity in college and it wasn't all about drinking as the media portrays it. We were actually a dry house so we COULDN'T have parties at the house. Though, some brothers usually lived off campus and would throw parties at their place. We also did not haze (I would not have made it in if they hazed - I don't degrade myself for anyone). But, we would also have study sessions where the older guys would tutor the new guys. We went whitewater rafting and paintballing. We had a meal plan that was 1/3 the cost of the campus meal plan. And living in the house was less than half the cost of the dorms. Some guys did some stupid stuff occasionally, and a lot of the other fraternities seemed to be filled with only douches and idiots, but the actual type of organization is not the problem. Those douches and idiots will still be doing douchey and idiotic things even if they can't join a fraternity. The problem is the behaviors and mindsets, which fraternities and sororities do not have a monopoly on.
I also agree with a previous poster that this will just push the fraternities and sororities underground. Or, more likely, it will be a popularity contest. If the administration likes you then they will have you approved as a "club". If they don't like you, for example the nerds playing Magic, they will bust in and shut it down.
Basically, I don't think this will fix anything. Pushing organizations underground will actually make them less accountable or controllable. Are you going to call the hazing hotline if the underground organization that you joined is hazing you? And the people it will hurt is the people who normally follow the rules. People who are binge drinking and hazing are already breaking the rules... why would they care about breaking a few more by forming an underground organization?