Racers shave their legs for two main reasons; 1 - if you crash and get roadrash the wound is cleaner and easier to deal with, and 2 - during stage races and other periods of doing long hard miles deep leg muscle massage helps get out lactic acid, and heavy leg hair hurts to be pulled that hard.
I shaved my legs when I raced, I don't race, so I don't now.
The thing about leg shaving is that you have to earn it. If you're not fast enough or at least logging enough hours on the bike, you're the dorkiest kind of poser if you shave. The team kit thing is similar. A US Postal yellow jersey is usually the sure sign of a beginner. Full team kit--jersey and shorts--is much more gauche than just the jersey. Most serious guys wear either a club jersey or just a plain-colored one. Or a souvenir one from some organized ride they've done.
Coincidentally to this thread, in the last few weeks I've heard about three cyclists killed by drunks. Two retired guys on the second day of their dream cross-country bike trip were plowed off the shoulder by a drunk in the California desert, and in the south somewhere, a fairly well-known bicycle advocate (not a critical mass hippie type, just a long-distance rider who had written extensively about traffic safety) was run over by a drunk in a pickup who had literally just been released from jail on a DUI charge a couple of hours before. He apparently went straight from jail to a bar, got drunk, got in his truck and ran over this guy. He's facing murder charges now.