I wasn't going to respond to this at first, but I feel like I need to. Soror IvyDeviness, I'll start by saying we can agree to disagree.
I am a neo made through an undergrad chapter, and only applied once. However, I agree with Soror Happydays on the fact that there are many qualified individuals who were not selected for membership the first time around. Does this mean they aren't "good enough" for AKA? To me it simply means they may have had a bad academic semester or just weren't ready at that point. Were there people rejected for my line that I would still consider bringing into the organization? Yes, because I believe they are qualified women.
I also disagree that sorors initiated through grad chapter are "suspect". People have various reasons for waiting, and regardless of when/where/how you were made, the bottom line is that you are STILL MY SOROR and I will love and respect you, regardless. I know plenty of sorors here on GC who were initiated through a grad chapter, and not only do they "appreciate what's been handed to them", but they have been some of the people whose advice was most helpful to me during my quest for AKA. Some people slip through undergrad AND grad chapters... I don't think it's fair to generalize.
I also don't think it's fair to assume that if someone is inactive, they just pledged for letters. My mother has been a member of Alpha Kappa Alpha since 1962, and she recently became inactive because of extreme financial strain, not because she is just a t-shirt wearer. Situations are individualized.
And if a young lady's interest in AKA is diminished because there are too many people in a particular chapter, then the interest wasn't really there to begin with. I don't think the issue is so much limiting how many people we bring in, but WHO we bring in. As long as we are discerning enough to bring in QUALITY women of integrity and class, Alpha Kappa Alpha will remain an elite organization, regardless of the magnitude of members.
Back on topic...

This thread really got me thinking more in terms of reclamation, and while I've been working on my mother, it made me want to do something more. We discussed it as a chapter and we're having a rededication ceremony in March for inactive sorors in our area. Sort of a brunch, just to mingle with them and give them information on becoming active again. Thanks, Soror AKA2D, for sparking the concern.