I was under the impression that the administration or at least parts of it wanted to make all freshmen live on campus before the 1997 fraternity death but ran into extremely strong opposition from students and alumni and then were forced to drop the plan.
I am sure that many of the faculty in the administration and outside of it didn't think much of the frat system. Two of my advisors said so without my prompting them. However, despite these misgivings, I am quite sure there was no "plan" put forward to put freshmen on campus before 1997 because everyone would have already known that it would be rejected by students and alumni. I don't know whether there was any internal discussion in the early 1990s when they made that report. Until recently, they were unwilling to spend money on dorms, so that was a factor.
You are right. Students and alumni were opposed to the Freshmen on Campus plan, even after the 1997 death. It's complicated, though. A large chunk of the student body is indoctrinated into a system, and then, big surprise, they are opposed to changing it.