This.
As a nontrad returning after being out in the real world for a dozen years, I have a different perspective than most of you. I am comfortable in dress and casual business clothes already. It didn't happen overnight, and it won't for you either. I think it IS inevitable. At the same time, if I can get away with it at home I won't even wear pants!
But, seriously, I understand why many people would like to be comfortable during class. If you are not in the public view, and your school allows it, why not? If you are more comfortable, won't you learn better? I would probably agree. So if a classmate chooses to wear PJs, it isn't a sign of a slacker, IMHO.
On the other hand I see that, at most, med students will be putting off the inevitable by only a few more years. That is, if you are not "dressing up" now on a daily basis, you will be within a few years (besides the occasional function at school or clinics and rotations during school). The reason dress is 'codified' in most professional places of business is prevent distraction and 'set the tone' for activities. If you are dressed like a professional, you tend to act more like a professional - or so the argument goes (not that I agree). So if a classmate chooses to dress up, it isn't a sign of being a gunner, IMHO.
A couple of thoughts about dressing up:
1) In two months I will be starting at the Cleveland Clinic. The medical school is attached to the main hospital. There is LOTS of foot traffic near the classrooms and thus I intend to be dressed in business casual. From what I understand, it isn't a hard-and-fast rule that you must be dressed up (khakis for men, etc.). However, they for the most part do. This is in line with ButImLETired's rule of thumb.
Also, Cleveland Clinic Students wear long-coats in the hospital, and not short-coats (the rest of Case Western wear short-coats, in fact).
2) To expound upon ButImLETired's post:
Patients and family and the general public also will see you. Imagine you are visiting your grandmother at a hospital who is terminal. What sort of medical students would you like to see? How would their dress affect your opinion of the hospital or school or Grandma's care?
You will be associated with your medical school the rest of your professional life. From the first day you step onto your campus, you become an 'ambassador' of your institution. As corny as that sounds - it is true. The general public will hold you to a higher standard than you were held to as an undergraduate.
3) This is slightly off topic, but bears noting:
As an applicant, I highly recommend you wear your interview outfit as much as possible BEFORE your interview. If you are not used to wearing this sort of clothing, it will be readily obvious to anyone on interview day. I picked up this trick from amateur racecar drivers who wear their helmets around the house to get comfortable with the limited vision and movement it allows. Similarly, I tell people to wake up every Sunday morning, put on your interview suit, and make breakfast, sit on the couch and walk around.