Earlier quoted context omitted.
FYI, there is an upscale restaurant where I go regularly for lunch that has only attractive women. (Not Hooters)
There is a difference between a hackathon and a restaurant. There are actually restaurants that hire very good looking men also because they are going for a certain clientele. Sexuality sells a lot of things, but that's hormones and money. The problem here is that a goodly chunk of people expect the clientele of a hackathon to be developers. Developers are men and women who are professional. As much as sexuality sell…
Not to defend Sqoot at all, but... um... booth babes? Every large trade show has them. They are there specifically to excite the hormones of the male professionals in attendance. Their use is as sexist as it is effective.
Had Sqoot quietly hired a bunch of models to serve beer to the attendants, and had they had the sense not to publicly high-five themselves for doing so, there would have been no controversy. The reason Sqoot landed in the soup is because they wore their sexism on their sleeves, and handled their communications like obnoxious rubes rather than responsible business owners. Their crime was lack of finesse.