Part of what makes Greek Life fun is competition. I think IFC can help it be a spirited competition rather than a violent one. That's often the difference.
Unfortunately, oftentimes, IFC is just a vehicle for the more 'elite' chapters to maintain their status and really nothing more. If a chapter is being arrogant, why let it bother you? You still know that their arrogance is misplaced. Rather than getting bent out of shape about it, laugh it off and move on with your lives.
There are similar issues on my alma mater's campus. For example, one particular fraternity has a reputation of playing pretty rough in flag football -- and I don't mean just bumps and pushes, I mean they throw punches and kicks when refs aren't looking. Not only were our guys able to avoid an altercation this weekend, we also blanked 'em 17-0
after which we just packed up and went back to the house before they could start anything. Heck, they'd just been owned. What could they possibly say?
I only mention that because I think my chapter is a pretty good example of how to best deal with other chapters that have misplaced arrogance. Be honorable, be gentlemanly about it, be the bigger men. The men of your chapter know that you have the best thing going on campus, so what else matters?
Your proposition of a solution to this by committee is interesting on paper, but when you start to involve the egos of 18-20 year olds that are in organizations that promote thuggishness and arrogance, all a committee will do for you is make the problem worse.