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If im reading the BRB correctly, assault grenades are needed on every model in the game. To stay at Initiative in CC, you must have assault grenades. Assault Grenades Pg. 180

MTC keeps you from taking the -2 inches in your charge, thats great and all but it doesnt say anything about initiative. pg 168

Furthermore, for assaulting through terrain pg 47, "regardless of other Intitative modifiers, even if the charging unit is not slowed by difficult terrain" theyre still at I1.

Is there any other way to avoid I1 in CC other than grenades? Theres no way this is accurate right? If it is, how can ruins be allowed in game at all?

That's the point of assault grenades for terrain. You have everything correct.

It's entirely correct.

There are a few other ways to avoid it (Eldar Howling Banshees 'Acrobatic' rule, for example) but not many.

Off the top of my head I can't think of one, but I know I've read quit a few abilities that state that the unit 'counts as having assault grenades'

Loads of units have abilities to avoid this (like Harlequins) or you can simply pin the unit you wish to assault or not assault into terrain. Not sure what the massive deal is?

There is also one way that HammerTerminators use: "Don't Care". A unit that is going to be swing Unwieldy doesn't care if their target is in Cover or not, they're going to be swinging at the end anyway.

But as others have mentioned, some other rules or Wargear allow you to ignore the penalty, like Ironclad Assault Launchers (no longer counts as Assault Grenades).

There are some questionable ones like Necron Wraiths and C'tan who ignore Terrain while Moving, but that's another subject.