I think parts of this idea and some of the later suggestions are pretty clever. The BBQ/tailgate aspect of it that some have added, a la the Houston Livestock Show and Rodeo, is pretty cool and it fits A&M. Wouldn't an all-night BBQ/tailgate be phenomenal? The SEC has the world's biggest cocktail party, why couldn't A&M have the world's biggest BBQ? The party atmosphere could be a real hoot, and you could probably get corporate sponsorships for tents and booths and the like that would create proceeds to donate to some charity, or perhaps an A&M-related cause.
The problem as many have said is that anything involving a significant fire and construction at A&M will be a tough sell, regardless of whether there are high schools that do the same thing (and did you ever think that high schools are probably going to start seeing their bonfires discontinued for the same reason?). A&M is marked right now for any kind of large "woodburning" event, and liability insurance may be cost prohibitive no matter how safe it is. That's just a result of the climate that ambulance chasing attorneys have created in the U.S. (I'm a lawyer, so maybe I can say that). And if the expected cost for future bonfires is over $1,000,000, I agree that there have to be better uses for that money.
Anyway, I like the creativity. Ideally, something like the world's largest BBQ could be intertwined with a huge public service project like the Big Event,or at least generate proceeds toward some good cause. I will miss bonfire, but it was always a shame to see all that work go toward a fire that left nothing tangible behind. Maybe we can come up with a new tradition that can replace bonfire and still offer much of the same comaraderie, while at the saem time doing some fund raising for a good cause (and it doesn't necessarily have to involve a huge conflagration).