Yes, blow-drying hair is a problem (just like talking loudly is), way before covid there was a damning study about airblade hand dryers being disease spreaders compared to paper towels. No, operating at 50% of capacity does not privileges bigger shops, they remain exactly that much bigger and more profitable than small shops as before covid. And I might be in a minority but I really see no issue cutting own hair, I did it before covid and come across other adults who do that, out of habit and lack of vanity not financial difficulty (just like cutting own nails/toenails, etc.).
The only complaint I share is requiring cashless payment. Setting a precedent for denying cash payments seems a bit worse than the inconvenience of missing a haircut. Wearing gloves during or sanitizing hands after handling cash seems very minor in big picture. However, cashless was just a passing note at the end of the article.