I don't think it'll completely go away either, although like many others I kinda think it should.
And unfortunately, it's not just a handful of people. These are large mobs each time it happens. And worse yet, it's a campus and community wide mentality. The jokes are everyone leading up to VEISHEA each year. Yes - they're jokes. But still there's a certain aura and even expectation that goes with the event. Worse yet - there's a morbid pride by far too many in the whole riot culture around VEISHEA
The only way I can think that it'll work going forward is to almost kill off all the true student events and make the week more normal. Meaning concerts, shows and many other on campus events. Outside the parade, I'm not sure what that leaves you with. And of course, this is really meant to be a student event, so that really shuts down the point of the whole thing. Which leads me back to canceling it.
Of course, businesses in Ames make a nice chunk of change that week - which is why I think it won't really go away. Probably the best thing is some sort of special set of city ordinances to shut bars and alcohol sales down earlier during VEISHEA week. I have zero idea if that's even possible. And again, gripe as the might about the damages - the Ames business community as a whole and the local bar merchants would flip a lid over that idea.