You can't tell me they didn't have formal grievance procedures way back when. I've been in for just shy of 13 years, and we've always had them. They basically come into play when one's command refuses to listen to reason.
Yes we did have similar procedures way back then, but they were reserved for much more serious matters than the COB not approving of the civilian attire worn on board a Naval Vessel. I took an early retirement about the time that you were in basic training. Part of the reason I left the Navy early was due to the ridiculous political correctness that was going on. Too many new recruits that thought that the military was a country club and if they got yelled at would go crying to their mommy and congressman.

"Umm... yeah. Except... when you need to go to the next step above the bull enlisted guy, you go to the CO"
I thought the step above the "bull enlisted guy" was the division officer (or in my case the company commander)? How would you feel if one of your subordinates went over your head? Way over your head, I doubt you would be very happy about it.

Now I am in no way questioning your military service or dedication, lord knows I could never be locked up in one of those tin cans but the fact of the matter is that while you and me and everyone else on this board love the kilt lifestyle it just doesn't fit in to mainstream military lifestyle. When I was in earrings were authorized in civillian clothes off base, but heaven help you if your platoon commander or chief caught you with one. And I can guarrentee you that those officers in that photo had to get special permission to wear the kilt with dinner dress uniforms.