I think everybody above has just about covered all the main points.
As a dancer in the 60s I did worry about the hanky waving although the stick bashing was much more macho.

I think the main problem could be applied to several traditions, the innate conservatism that stops the tradition from continuing to evolve so that it becomes largely a museum piece frozen in the 19th century in this case. Those teams that have tried to update the image, costumes and style are not laughed at, at least not in the same way.

As someone has already pointed out, the northern sword dances are not ridiculed, and they have similarities. Therefore look at the differences.

Again to repeat what has been said about ageing dancers, I do think some of the younger dancers like 'Dog Rose' with their athletic prowess can even make the hanky waving look impressive.