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Pretty much it has been said the polka dots were Dusty's idea. By that point, he was in his mid-40s and was never going to be featured as a serious main event contender. If anything, the gimmick endeared him to the WWF audience at that time and he actually did get featured in some high profile feuds. Plus that theme song was fire. 
Besides look what super serious and stoic Greg Valentine was doing at the same Wrestlemania that Dusty Rhodes defeated Randy Savage in a tag team match LOL.
Besides look what super serious and stoic Greg Valentine was doing at the same Wrestlemania that Dusty Rhodes defeated Randy Savage in a tag team match LOL.