Tailhook
Cheating
Drug dealing
Chaining girls to urinals
Tailhook and chaining girls to urinals (along with hiding in closets) can certainly be humorous. Drug dealing and cheating...maybe. Murder? That just isn't really funny. Nobody is sensitive about it and everyone at USAFA/USNA is familiar with the story. It just isn't funny. If you want us to laugh at you...be funny.
I agree that every alumni group has its bonds. It's just that in the AF about half your squadron will be from one alumni group. Everyone else might be an alumni group of one or two. Like the -15E guy said, it no longer helps you advance in your career (at least I haven't seen that).
As far as civvie connections go, it does help. One laywer buddy go hired at a prestigous firm because one partner was USAFA. Another bud got a job as a financial analyst through Academy connections, and I've written about 10 recs for Academy buds for my airline.
Anyway, U of M is a great school and I think you'll be as competitive as anyone for a UPT slot. The driving factor for the ROTC guys four years from now is going to simply be the number of slots available, not GPA or major. Of course, if you keep a 4.0 in engineering, you should be safe no matter what. Good luck.