I honestly don't mind the Social Groups, but I do wish they had more activity.
I think there should be another purge of Social Groups, and the system of them be rebooted with a moderator team appointed to approve ALL new groups. Purge groups that don't see a lot of posts much like the forums themselves must undergo. I'm sure there's a tool in the ACP that makes that easy...delete all groups that haven't seen a post or a member join in a month.
Make the members who start these social groups responsible for them...if they don't properly enforce the Social Group rules, then keep them from starting another one. Perhaps make it possible, if possible, to appoint more maintainers to the group to keep a busy group well policed.
I know the Member Fanclubs forum has recently disappeared, why not let people found member fanclubs as social groups? Maybe reject Social Groups that could work better as a club in the Other Groups or Pokemon Groups areas? I think Social Groups don't see action because too many new groups get made by n00bs every day and that ought to be something we moderate by requiring you have so many posts before you can make a Social group or have donated...much like the blogs are. The blogs prosper fairly well because they're exclusive like that, why not let Social Groups be that way?
Edit:
I went and did a search for groups with no more than 10 Members, 10 Discussions and 10 Messages. I found 51 pages of minimally active groups. :<
I trimmed the search terms to show groups with no more than 10 members, 1 discussion and 10 messages. I found 40 pages of groups that should probably be trimmed.
I decided to be charitable and query for groups with no more than 3 members, 1 discussion and 10 messages. I STILL found 23 pages of groups that are just spam.
Note that my main baseline for minimum activity is 10 messages within the group. That's not a whole lot to ask of any number of group members, and yet still, I see far too many groups who don't even meet that criteria! The Junk needs to be taken out and some serious regulation needs to come into play to bring activity into it...because it's hard to find a good active group among all the crappy duds unless you really try.