What style of dress do you expect for people in their 20's dressing casually? This is such a silly label that it's almost not worth arguing over, but I fail to see what expectation has failed for you here.
I am currently visiting/working in NYC and staying on the Lower East Side. Seriously, everyone here dresses like that--this hipster thing goes way deeper than I could have imagined...
That hipster bullshit is getting tired. The stereotypes are stupid and it all comes down to berating people for what they wear – for whatever stupid reason. Why would that ever be cool?
All I see is lots of young people who know how to dress fashionable.