It wasn't nonsense at the time, it was just a dress code. People who didn't like it went elsewhere. If you didn't grow up in the era, watch an old rerun of the original 50's Mickey Mouse Club. That was Disney then, that was their core audience, and DL reflected it 100%. In the 60's, hippies protesting Disney's dress code made the national news for a week.
That carried forward into the 70's-80's as hairstyles got more outrageous. I still remember a great letter-to-the-editor in the LA Times where the commenter said, reasonably, that behavior matters far more than fashion, and that he'd rather be in line with a polite woman with a purple mohawk than a rude woman who looked like June Cleaver.
Personally, I never applied for a job at DL because at the time because I didn't want to cut my hair super-short. Now CMs can even have mustaches. The pay still still sucks, but I guess that's *some* compensation.