Mormon Halloween Party Bans Cross-Dressing Costumes: OK or Outrageous?

I used to be a Mormon, baptised at 18 but became inactive at about 22. This was a personal choice and not made because I disagreed with church policies, in fact I still keep in touch with them and have the missionaries over all the time to chitchat, cook for and they sometimes help me with the gardening and such.
My choice to leave was about my loss of faith. Now again, this is a very personal thing and has nothing to do with the colour of eggs in winter under a pile of cow dung (in other words, not to be discussed).

I still respect them greatly years later due to their kindness to strangers, being generally constant with the ideals of living like Jesus, being tolerant (if sometimes disapproving, but they don't call gays evil or that they'll go to hell like other certain groups), hold the key the to largest genealogical records facility in the world, donate freely and store required items for the world Red Cross, encourage people to work on their strengths (which some call being gender biased, but when you're sitting amongst other women, learning how to look after children, getting guidance of making a house into a home, you learn that these things come more natural to US then to men. I preferred my strengths to get guidance once a week and then focus on my career and other skills every other day. Let men freak out about looking after the family and being a husband and father...I wanted to learn how to be a MOTHER) and would knock on your door with a care package of donated food and such if you were going through hard times.

They have ground rules though and these are treated with respect. We wore skirts to mass/sacrament, the men wore ties and smart suits. We were not allowed in the Temple till we were Ordained and then it was a strictly private affair. No consumption of openly harmful chemicals that were normally considered socially acceptable, especially mind altering ones. Caffeine, alcohol, cigarettes - bad bad bad. Sex was a sacred thing, not to be considered a deal-maker for a successful marriage but to be the symbolic joining of 2 souls in everlasting LOVE, not lust or fun times, but love (now I don't miss this aspect. I live "in sin" now but have a gorgeous little boy and a very stable relationship to show for it). They read the Bible - mainly focussing on the teachings of Christ as they should, since Christianity is based on HIS words and not on the Old Testament which is essentially the Torah - more than most "bible bashers" I have come across and have a little Book of Mormon with extra things that works for their religion and compliments the Bible very very nicely, expanding on Christ's teachings and driving home the importance of love, family, fellowship and tolerance.

To the matter at hand, now I have said all this. A Ward (a church group in a single area) held a fun Halloween party for their members and anyone else who wished to show up. They laid down general rules for this particular party so everyone in general attendance would feel comfortable. No masks, no cross-dressing.

After all I have just typed, was it really out of spite and intolerance of differences in the way some people dress? Or was it them just not being politically correct and catering to everyone on the planet in case they hurt someone's feelings.

I'm a bisexual, agnostic spiritually minded Pastafarian and I tell those who hate others for stupid things like this, or hate ANYONE for what they do or are that you are small minded, insecure and very very little in the universe. You don't matter, and I pity you.