I'm not a "Greek", and I never have been or wanted to be, but your characterization of them is not consistent with what I have known.
Neither was I, and I agree to a *small* extent. Mind you, I'm from Arkansas and it was a long time ago, but there were still frats (and sororities) that were, shall we say, a wee bit on the exclusionary side of things, and the exclusions were occasionally based on religion, skin color, ethnic origin...
As for TFA? As much as I myself detest racism and bigotry based on someone's religion/ethnicity/etc... Personally, I think they *should* be allowed to be total asshats about it. Seriously - as long as there's no assualt or other crimes against others, let them chant whatever the hell they want.
I say this for two reasons:
1) College is supposed to be a place where all viewpoints and ideas are explored - even the ugly and stupid ones. Freedom of speech should hold highest priority in such a place.
2) The video (and anything like it) can serve as an example to point at and instruct against; a competent prof can debate the racist activity into the dirt, in a setting that educates everyone else, and (hopefully) teaches the racists in question along the way.
By kicking out the frat charter, you only drive the problem deeper underground... and where is the frickin' benefit in doing that among a body of kids that are going to be naturally rebellious in the first place? You only make it more attractive to such a mindset.
By not kicking out the frat charter you are condoning what was done, implicitly - which the school won't do.
Additionally I think it's an excellent lesson to be learned - being stupid has consequences. If they don't get kicked out, they don't get punished...no lesson learned except that they can get away with it.