Beauty is a portion of it, but the winner is expected to speak eloquently and support an issue during her year. If she can't speak publicly or can't speak intelligently on an issue, then there's a problem, regardless of how she looks in a swimsuit (they don't parade around in one during their "reign"). The scoring values are kind of wonky in how they reward beauty versus how they reward well-roundedness and/or the speaking portion. Not saying I agree with taking the swimsuit competition out, but I don't think it was ever necessary, either - you can tell if someone is fairly fit and in good shape from what they wear in general. At any rate, I would like to see the competition force contestants to actually be able to answer questions about current affairs without sounding like an idiot (which I think is partly just poor public speaking skills).
I remember as a kid they used to show the talent competition - get back to that, maybe. Stop treating women as 75% beauty and 25% substance.