Thanks phoebe!
Although I had no time to answer back, I read your second post before you edited it (maybe due to copyright violation?) so I already know that article
I think that " fare bella figura" are just the italian words to define an attitude which isn't only Italian, but there is something true in what the article says.
Compared to most other peoples, we Italians are very formal regarding appearance. We care a lot of look and are devoted to status symbols. If you're not a poor, here you're supposed to dress smartly, drive a brand new car, live in a nice home full of expensive furniture, otherwise you'll be considered eccentric. I'm not saying this is a good quality... when we care more of appearance then substance, it's narcisism, and sometimes a nonsense if you spend all the money you get in status symbols as many Italians do. More, it's also true that we tend to hide anything which doesn't fit those aesthetic ideals...for example you never see here handicapped people going around in their wheelchairs as they feel ashamed of theirselves, which is really something WE ALL should be ashamed of.

But it's likely that those defects make us the most elegant people in the world, just because also plumbers, salesgirls and garbage collectors dress nicely, not only the rich as it happens everywhere in the world (BTW, this is probably the reason why here there is no clear cut between formal and everyday dressing. I can dress the same way at work, going to the disco or shopping in a supermarket, and this will be considered perfectly normal...gym shoes included as they can be terribly expensive here

)
On the other side, apart from dress fashion (all considered, you Californians dress Armani and Versace

) I agree with Chefboy2160 that we Italians are not trend setters! YOU Americans are the world trend setters, and we follow. Even Italian cooking has become a fashion thanks to you Americans
But I must say a thing more about that. We are slim because we eat Mediterranean - lots of fresh food, few junk food. You're trying to do the same, apparently. But this is a diet for you, while it's natural for us. This is the food we are grown up with. So, we are favoured, I think
As for Berlusconi, his flamboyance is an exception - an American-style exception, I could say. Italian politicians are generally rather dull and anonymous...
Pongi