There's nothing at all wrong with Formal Nights, and I really hope other lines don't dumb then down. I'm not surprised by Klassy Karnival not enforcing dress codes, as the average attendee on one of their death ships is likely not to own anything more formal than an unwashed NASCAR t-shirt. But I really hope this is not a trend that expands beyond their "Wal-Mart Of The Seas" ideology.
And as far as not being able to have fun while dressed up, this is oh so wrong. Our group dinners out here in Baltimore for fine dining are certainly fun, with the waitstaff often remarking things like, "that was the most amusing discussion about medical experiments we've ever heard". We do tip well, of course, in case anyone needs to see a therapist afterwards...
dt