I work at a Church school (BYUI) and here's what I see as the problems with the Dress and Grooming standards.

• It gets in the way of some of the students understanding the gospel of Jesus Christ. This tends to be the rule followers and it turns them into little Pharisees and they get hung up on things that aren't even part of the gospel.
• It tends to make the students who think for themselves cynical about the gospel and that doesn't help anyone.
• The Church school honor codes came as a reaction to the counter-culture of the sixties. In other words, we basically allowed hippies to write our rules and then we hard wired them into our church's culture. So, now that beards and long hair on men aren't counter-culture we look like a bunch of religious cultists and wackadoodles. And we should, because in this case that's what we are.
• This hurts our missionary efforts because we are peculiar, but not in a good way.
• Jesus had a beard and long hair. The authorities claim to know this and act like it's a sophomoric comment, but it's not. The Savior of mankind had a beard but we are supposed to think it's a bad thing.

If anyone wants to tell me that the standards are there because the Lord wants it then I take it all back, I'll support whatever He wants. But when I talk with people on campus that's usually not the reasons I get. They usually tell me that it's either an elderly donor with tons of money who won't donate if the standards are changed, or it's Elder Bednar. I have had people on the executive council tell me that Henry J. has told them that he'll never bring that question to the board because of Bednar. 

Of course, I have the same problem with ties, so maybe it's just me.