The Greek system has 0 importance in college in 2025.
If it didn't exist anywhere, MSU and other universities would continue to exist. Even Bama, with its shallow materialistic Sororities being social media famous, would continue to exist and thrive.
But since it exists elsewhere, it sure as 17 needs to exist at MSU too.
If MSU got rid of it, and everywhere else still had it, MSU would for sure be at a disadvantage for quality students.

You're absolutely right about the second part.
I think you're mostly right about the middle- If there were no Greek system anywhere, universities would continue to exist.
I'm a long time removed from my college days. I'm a terrible person to opine on what's important to college life today. But I assume it's mostly the same as it was: great for some people.