Why show the audience that Betty doesn't want to go to State? Why not just have her start off at Springfield JC?

What was the point of this episode?

It also led to another continuity error of the future--in season 6 Jim and Margaret were preparing to go to the college homecoming dance, and at the beginning of the episode they even heard the alma mater song thru the open living room window.

The trip to State made it seem like it was in another city for sure.

As for the episode itself, it was really silly. It had Margaret and Jim clueless, and pre-arranging their daughter's life. Had Jim not overheard Betty talking to Bud he would have been clueless even in the wise dean's office. But, knowing, he still acted as if they knew best, and it took the dean to knock some sense into him by providing Jim's old essay. Only Jim reading it out loud clued him in.

Father Knew Least in this episode. And Mother Hadn't a Clue Either.

Yes, hearing the song through the open window (or a closed window for that matter) made no sense.