We certainly could lose a recruit here or there over this (perhaps it was even a real factor w UVU's White, or w Caleb too — Who knows?). Even still, of all my issues w the HC over the years, this one doesn't even register to me. As university is preparation for the white-collar professional world, enforcing the grooming standards & respectability typical of that world is more than justified.
Which is why facial hair is a much different issue, imo. For the simple reason that men w bad complexions or certain face shapes often look better by societal standards if they wear a beard. (Incidentally, this wouldn't be me. My facial hair stinks.)