Beta's RM policy is there to cover it's own ass. It's like your car insurance policy, or your homeowners policy - read it, you'd be amazed at the crap in that. It's only expected that Beta's RM policy would be written that way. Also, go online and read other GLO's RM policies - you'll find very similar, if not more extensive policies.
For closing down chapters - yes, they have to keep a timeline of events, and bring up events that happened several years back. Why? Well, just because the chapter gets new members each year, and a 4-5 year complete flip in chapter, doesn't mean they wipe that slate clean, nor does the university. This track record allows the GF and the Unviersity to justify their actions when dealing with any chapter.
When dealing with a 'bad' chapter (whatever you consider bad), saying 'lets just cut out 90% of the tumor, and hope the other 10% dies off', won't work. If you have a bad chapter, and they continually screw up, I agree with GF, shut them down. If they're bad and GF goes through the re-org process, keep top 6 men, 'Alumni' the rest, and start over - that's great too.....there are plenty of options, you just seem fixated on the GF 'devil'. The GF and the Univ. doesn't have time, resources, money to mess around with a bad chapter, and nor should they. Also, a lot of the time, the GF closes a chapter at the request/pressure of the university or the chapter's alumni.
Also, I can't stress it enough - if you don't like the way Beta is going today, when you graduate, become very active with the GF as a Asst. District Chief, or District Chief or something, and try to make some positive changes. Bitching about it online does no good - venting helps though
. And if you're not happy with Beta today and don't want to go that route, go alumni status and be done with it. Worst case scenario, deactivate.