This is a good thing overall, because multiple guest surveys conducted across multiple parks and markets have shown guests don't particularly care about the personal appearance of the employees as long as their uniform is clean and they're nice.
Do you have a source for that? I'm wondering if I'm really becoming that much of a curmudgeon in my old age. I think it's great that Disney is respecting how cast members want to present their gender, but I wish they would've preserved the restrictions on tattoos and piercings. It kinda undermines the theming of a lot of the rides and areas to have CMs who are all tatted up and have ear gauges the size of quarters.
I know through the comments that those who did oppose it usually had long winded explanations for why they did, but they were about 10% of 10-15% of people who submitted surveys at Six Flags that opposed the idea of dress code changes.
People who frequent Six Flags have self-selected for their willingness to tolerate anything. ? I wonder what Disney's polls looked like. Obviously enough people were okay with it to make Disney comfortable with making the change. In any event, my guess is that this was driven by the need to expand the hiring pool rather than by customer demand.