Rae, fascinating point! It is so much fun to read what everyone here has to say! You all are the BEST at taking on a topic and bringing out the finer points...
In pondering more, I think the whole "community' analysis is spot-on, as Girl, X, Mo, wilson and others have said. This is a group of people who have chosen to replace certain social conventions with other social conventions. People are valued for what they contribute or create - one woman paints gorgeous silk scarves and jewelry, another weaves beautiful rugs with clothes she thrifts and wears, then dyes and rips into rags. The most fashion-conscious, unsurprisingly, are the teens - I have driven them into Anchorage more than once after demands to go to Hot Topic, Value Village and the like.
From being on YLF, I also have come to believe that style, like music or art, does have a certain innate element of native talent - not enough in itself, perhaps, but definitely a head start. There are some people here whom I would call "style naturals", who started out miles ahead of where I am now, after nearly a year. You can develop it or not, and you can learn it mechanically rather than by instinct, but either way the drive has to be there.
The people in my photo have for the most part turned that talent to other more lucrative pursuits to survive, or ignore it. Money is a factor, but not the only one at play. And because they bring those skills to community events, the significance was not diminished. The cake was a work of art! But as Mary said, everyone was dressed for the context and the collective sensibility.
As someone else mentioned their friend does, my friend whose son graduated leaves all her really nice clothes here at my house, to wear when she comes to town or out of state to see her family. And when they need an event-worthy dress, they just come raid my closet!