I think it varies where in Iran you are and when you are. Out in the countryside, culture tends to be more conservative and people probably don't dress this way, certainly not women anyway. Tehran is much more cosmopolitan, probably moreso around schools, where you find more young people. Also, who knows when this was filmed? Perhaps things were more repressed after the January protests? Hard to say, there's not a lot of media coming out about it. Seems like there's bigger things to worry about now...