I don't think the tradition has outgrown its usefulness...it's just that there are so many more legacies than there are spots at some schools.
However, sometimes parents put pressure on without realizing it...one of our sisters that was a non-chapter legacy (her mom went to school in Michigan) pledged us, and she is a sweet girl, but I think she might have been happier someplace else.
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It is all 33girl's fault. ~DrPhil
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