It sounds nice to say appearance does not matter, but when one is serving the public, a business will want to put its best foot forward. Attractive people just fit into certain job slots more easily than people who are not well put together, well dressed, or with basic features. If looks matter to appeal to people, then a business should be able to hire a more attractive person.
I agree, service industries should be able to base their hiring strategies based on the physical appearance of their applicants. I think we as a society would be foolish to think, that in some degree this is not already happening in areas such as retail and food service. In many instances, it would be difficult to prove that employers were not basing hiring practices over appearance.