This is a very true and very harsh topic and unfortunately no matter what people say jobs do judge you on your appearance. This is why some people can still land a job just by looking 'cute'. Even if they don't have some or most of the requirements because of how they look they can get almost any job if they really need to.
They also don't realize this.
If you don't dress just right for your interview then you won't land the job. Too fancy and you won't get it. Not fancy enough and you won't get it. I think that if you look like your are ready to work for the company rather then 'dressing for an interview' that you would have more luck. I did that for my current job and I got it. My bosses also complained that I haven't straitened my hair since. I think I should start doing that again.
And if you think your male boss/coworkers are not looking at your appearance think again. I can't tell you how many times my boss 'teased' me about my white socks. I wore them with black shoes and pants. I finally told him that if it bothered him that much he could buy them for me. That shut him up but I did end up getting them.
It did shock me at how much the guys in the office talked about fashion. Well... more whined but still, it was interesting. Their conversation on pink was highly amusing.
Dressing for an interview can get even more frustrating if you can't seem to get called for an interview. This can cause people to get depressed. Because why get the nice outfit that will go out of style before you can ware it?
I think that if you think of it as treating yourself to a new outfit that will come in handy, then you can start getting into a positive point of view. Personally I would try for this 2-3 times a year because fashions and personal tastes do change. Plus, it won't hurt your budget as much unlike if you grab them all at once.
Baby steps, but you have to start someplace.