To answer your first question:
You can still watch initiations. I know that my collegiate chapter asks for the local alumnae help during initiation. We've had a few alum members come back to initiate their sisters, cousins, etc.
My chapter had a special "ceremony" during our last week of school for the graduating seniors. The local alum took us out for dinner and gave us gifts and told us about the alum chapter. I think that's all they do though. Admittedly, I haven't joined officially joined alum chapter.
Shame on me.