mbaseek12
italian applicants with their nice shoes and nice suits are then very advantaged

It's unfair don't you think so :D
Haha..check out a book called "Looks: Why They Matter More Than You Ever Imagined". It simply states that looks matter a GREAT deal in this world. Better looking people get better jobs, better pay, more promotions, better court outcomes, better teaching, and not to mention more desirable partners. Better looking people are even better loved by their parents.
The world, even the MBA ADCOM, likes good looking people. So yes, looking not so best would put anyone at a disadvantage.
Furthermore, I think it is very important to show in an MBA interview that one understands and is willing to follow unwritten business rules. A person who does not wear a proper professional attire to an MBA interview indicates either he/she is clueless about business interviews or is too rebellious to follow unwritten business rules.
It is critical to LOOK the part that you are interviewing. If you are interviewing for a CEO position, it is quite important to LOOK like a CEO. If you are interviewing at a top B-School such as Johnson, then it is important to look like a typical Johnson grad making over 100K+/yr with a reputable company.