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Jason,
I think one of the reasons (this is sheer speculation on my part, but seems reasonable enough) that LXA does not wish to be on a campus that will not recognize a chapter are possible legal ramifications that may, and I emphasize, may arise from risk-management or other issues.
While I think it is totally reasonable to have a chapter at a campus that either never has or has revoked recognition, I'm not sure if General Fraternity can afford the risk. In these days of legal sue-anyone-and-everyone mindset, that is probably one of the biggest reasons.
I do think that the General Fraternity is coming around on expansion. Not necessarily changing policy on expansion, but, they sure seem to be very aggressive recently in placing new colonies. I'm not sure if this is due to personnel, mindset, or financially based motivations, but, it sure is nice to see new colonies always showing in the Cross and Crescent, and, for the first time, the new colonies are outpacing the announcement of closed chapters.
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