I think the point that RUGreek is trying to bring up is that the SXO boys AREN'T technically hazing. Yes, by any national Greek organization's rules they would be hazing. However, check out the New York state laws:
http://www.stophazing.org/laws/ny_law.htm
According to those, no hazing is going on.
And since Sigma Chi Omega is a local, not a national, they have no national standards to adhere to.
So despite the fact that what they're doing may not necessarily be healthy, nice, or very good for Greek image -- it's not illegal.