Considering I lived in a town(back in the 80s) and attended a school where the majority were white(with a FEW of few being minority), the depiction of a small mid-west town in the middle of nowhere not featuring minorities isn't unrealistic at all. Besides, cultural diversity tends to revolve around major cities more than towns of the Hickville variety. There's a reason for that, cities have always been locations of opportunity. Even in most movies set in small towns, you tend to have characters always wanting to leave those small towns to head to the city to "be somebody"(find a good job, get famous and become important).
As for it's theme, it's fluff. Fun and cheesy fluff. I prefer this(and Grease) over a lot of similar movies that take themselves more seriously(though I think that's a problem with a lot of people general, they take themselves too seriously and just can't lighten up). And seemingly the concept of a town that has outlawed dancing is based on an ACTUAL town that had done the same. And before someone says that's unrealistic, if you've ever read some of the most ridiculous laws various counties enforce throughout the United States, you'd know that's not the most outlandish thing possible.
Of course, you could also ask the question of why Twilight, the Step Up movies, Hunger Games and such are big famous movies of the recent years. None of them are remarkably "good"(even Hunger Games isn't really that unique or original). They've just come out to target a group of young people who pick up on that stuff. Though, personally speaking, I'd watch Footloose over any of those movies(especially the Step Up movies), but that's just me!
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