The article is rubbish:
This happens in every industry where people make serious money. During the finance boom it happened in finance. Right the biotech boom it happened in biotech. Right now it is a tech boom, so it is happening in tech.
In this specific case the "models" are not the likes of Karolina Kurkova or the woman in the photo. At best they would be commercial models i.e. the ones that pose in clothes inside J.C. Penny during the holiday season.
It is also extremely unfortunate that the author of the piece allowed the agency owner to get away with a total puff piece - owners do not reject bookings from existing reasonably vetted clients because the clients request short skirts or plunging necklines ( of course it would be rejected if the client is hookers-and-blow.com ). If a legitimate company wanted two dwarfs to wrestle in jello for a holiday party, they would be found -- it just a matter of price. The price now is just higher. Most of the 'low-rent' market is in China (all over) where they are booked daily for nightclub appearances, 'high rent' in mostly in Moscow, RU.
P.S. Do notice that the agency CEO has a Russian name.
[Edit after the downvotes]: Here, let me google this for you:
http://www.dazeddigital.com/fashion/article/34811/1/my-life-...
http://www.scmp.com/lifestyle/fashion-luxury/article/2120857...
https://www.thespec.com/news-story/7741206-questions-anger-a...
http://modelingwisdom.com/what-is-commercial-modeling
http://moscowdoesntbelieveintears.blogspot.com/