They ask you to stop dressing so nice? Damn.
I had a colleague (from CS) state that my dressing with a coat and tie was a sign of respect for my students (I see it as an appropriate uniform for teaching university students, so it's respect for my role and a visual reminder to the students that they also have a role to play). Still, the pocket square is really just for me...
I have always seen dressing well as a sign of respect for my students and, as you say, for the profession of teaching and learning.
Most of the "you dress too nicely" comments are (I think) their own concern that people will start expecting them to do the same. So I usually get the double whammy of "you look very nice" and "stop doing it". It's mostly good natured ribbing relating to the fact that my style of dress doesn't really "fit in". It's an interesting place to be considering the perspective it provides on lots of the advice given on SF: people really need to understand that what is "appropriate dress" is hugely context specific. I choose to subvert those standards sometimes, but I'm also aware of the potential impacts subversion can have on other aspects.