naglok- Yikes man! That is hazing alright. It looks to be they took an old military hazing tradition called "Blood Wings". If I were you I would talk to your friend about reporting it, or at least to stop this act in future pledged classes.
On AlethiaSi, I understand where she is coming from. Heck, a sorority on this campus put 1 pledge into the hospital w/kidney failure, 1 pledge recieved a broken knuckle, and another pledge had an undisclosed hospital visit
Our school knows hazing goes on in one shape or another, as long as it doesn't hurt their image they don't care. Majority of their alumni support are Greeks anyway that went through -much worse- then any pledges now go through.