Since its a business school, why don't they produce research that shows one way or the other that how one dresses impacts on the bottom line of a company. Real research, not dustbin research.
For me, I wouldn't care less how you dress as long as you produce.
As for microsoft and others please note that even with encouraging dressing down, they never forget that sometimes to get a contract, you may need to dress up. So dressing down Friday may happen in the office but it doesn't apply to someone going to meet some old conservative geezer who wants to see you in a suit.
As a college policy, I think its pretty archaic and punitive. But its their compound.
Jose: If I make it through this thug life, I'll see you one day. The Lord is the only way to stop the hurt.