I think like many things, the bad ones tend to stick out more and make a bad name for the others. I don't see it as "paying for friends" or any of that ****, but I also think there are a lot of campuses that have entirely too much emphasis on them.
I rushed when I was a Frosh, and decided not to join any frats. I am glad I didn't for a lot of reasons, but the biggest is that I simply would not have graduated with my triple major and frat stuff. I look back at my first semester in college and generally this is the face I make:

.
I had a lot of friends in frats, my brother was in one, I don't think it makes you a bad person. I think a lot of people that have bad opinions of frats tend to forget that it's just a collection of like minded people. So if a certain frat are a bunch of elitist *******s on campus, guess what? They're going to get along with and recruit MORE elitist *******s.
Sororities are worlds different because girls are much more about their social status and crap than guys. You don't see guys bawling how their lives are over at 18/19 because some group didn't accept them. That said though, the Sororities seem to be much more about public outreach and fundraising, so that's good. Sure, they drink just as much as the guys, just not at their houses.
The only real thing that got me annoyed while in school was how to some people, Greek life was their whole world. Again, it is very easy to forget that these are the minority because they're the most visible (and most annoying). Many "GDIs" can relay stories of being ****ed over just because you're not Greek. I know guys and girls (myself included) who got dumped because they weren't Greeks.
Finally, I just wanna say that there is also an over emphasis on the importance of Greek life as it relates to your success. Sure, you can make some great connections in Greek life, but if you're not going into business or something related to what most of your brothers/sisters are doing, it's not going to help. It's not like knowing a bunch of lawyers would help me get another job when I'm done at NASA.
