I don't know if its true or not, but I read somewhere that the reason so many people wear MC5 shirts is because Levis bought that image. So a lot of people are probably buying the shirts and have no idea who MC5 were. Of course, with the Justin/MC5 and Paris/Beefheart pictures it is probably just image consultants trying to make them seem cool.
Same with "Von Dutch" wear and you are right about image consultants.
Also check out this article from the I-94 Bar webzine for the skinny on the Levi's idiocy too:
KICK OUT THE JEANS, MOTHERFU - SORRY, BROTHERS AND SISTERS...
OR
DOES IT SUCK TO MAKE A BUCK?
another article can be found here.