Fraternities have certainly had a negative impact on the popular opinion of MIT. The Institute now has a reputation for binge-drinking, fraternities that may lose their houses due to their inability to attend a hearing and, perhaps worst of all, technologically incompetent students.
MIT doesn't have the dormitory space to house all its students, but given all the trouble fraternities have caused over the past few years, one wonders why the Institute is not building more dormitories--fast.