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I think community service can be a good thing, but if the entire campus knows that you're doing it because you screwed up royally, then you don't look quite as good.
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In all fairness, there is no way out of this that is going to make this house "look good"... for breaking the rules, you should be held responsible for your actions, and personally I believe that these women should be upfront about what happened and what they're being punished for.
Obviously it will be embarassing for you girls to come out to everyone and say "Hey, we thought we were above the rules and guess what? We weren't." But you know what?? I think it could be a positive thing. Too often GLOs (and I know it only takes one chapter at one school to make Greeks EVERYWHERE look bad) think the rules don't apply to them. Unfortunately, there's always parties going on when there shouldn't be... for you to step forward to your campus, specifically your Greek community, and be honest could prove to be a huge reality check to other organizations that there are consequences to your actions.
As for this sorority in the first place... (not to spread the negativity) but if you went to my school, best case scenario you would be on social probation for the next year. And you're lucky nationals (or whoever your governing body may be) aren't pulling your charter. I find it disappointing that your school is even letting you come up "punishment suggestions"... what's the purpose in a campus being "dry" if the guilty parties come up with their own punishments?? You might as well just not enforce it at all...