So many interesting things to respond to in this thread:
The only time a movie musical has ever improved upon its source material. Actually, I believe that distinction was first given to The Sound of Music.
The interesting thing about the show is it takes place at the beginning of a transitional period for american youth. 1959 was the end of the proper post-war time and the generation in this show was the generation that was a big part of the change that happened in the 1960's. What year is it supposed to be set? The original production opened on Broadway in 1972 and begins with a reunion scene, but I've never really known what year the reunion is supposed to take place. Does it say "Class of 19__"?
And certainly the movie was NOT an improvement upon what the musical was first - in fact, I blame the horrid movie version for turning Grease into something it never was. I like the movie for what it is, but I hate that it ended up pretty much permanently changing the stage version. On stage, I'd rather see the original show with the original score.
I do have to agree the original book is poorly written unless the cast kicks the crap out of it. The original book really isn't that bad. It's just that the show was meant to be performed in a very specific style that was quickly abandoned and forgotten once the original production closed.
"What can you expect from a bunch of seitan worshippers?" - Reginald Tresilian