If a flying school is to attract slick clients it needs to have a slick image. This means the employees need to look smart and professional, and behave as such too. This means they shouldn't go around in scruffy clothing, swear etc.
But I think gold bars and such are a bit of a joke. There is no military rank or whatever involved after all. And few people who actually have them for real (airline pilots) won't be PPL instructing unless they are trying to reduce their income below the CSA assessment threshold