The hazing incident in the current news that occurred at Tulane is probably just a drop in a very full bucket.  There are many hazing incidents every year that are excepted as part of the pledge process as long as no one is physically injured, or at least, not injured enough to file a suit or call police.  For quite a few years now colleges and fraternities have said they were cracking down on the practice but they are not actually forbidding hazing, they just don't want it to get out of control.  That's somewhat like giving young men loaded rifles but telling them they can only use them as clubs, no shooting.
    I don't think hazing of any sort is good for the students, the colleges, the fraternities or society as a whole for two main reasons:

1) Allowing hazing of any kind will inevitably lead to occasional incidents where someone is injured physically, and even when they aren't, there are often emotional and mental scars that may go unnoticed for years.

2) Hazing, of any kind, promotes the idea that "I'm better than you and can rule over you because ______."  In this case, because I was in the fraternity before you, but promoting this concept only causes that concept, with the blank filled in by various other words, to continue to operate.  I'm better than you because of where I live, what church I go to, what sports teams I root for, etc.  It is this concept that causes many problems and promoting it in any way is inappropriate for any college.

I think the evidence of the past twenty years or so shows that trying to limit hazing doesn't work and the best solution is to get rid of the fraternities entirely.  Those upper-class gangs really serve no purpose to society or to the universities.