2) This makes me sad, because I always thought SWA was one of the good guys.

Kinda off-topic, but SWA doesn't have the best track record with this type of stuff. In the 80's, Southwest Airlines tried to justify its policy that only attractive women could work as flight attendants and ticket agents. They wanted to project a “sexy image and fulfill its public promise to take passengers skyward with love.” Thankfully, the courts weren't swayed.