Is it okay to wear bindis? Or how about Indian headdresses? I think there is a final line between demoralising someone's culture and respecting it.
In my opinion (yes, I went there), people that wear a bindi, an indian headdress or anything else like that aren't trying to offend anyone. I would agree that there is a time and a place to wear these things but, is it really such a big deal to wear them to a festival or a fancy dress party? I'd say no. I've found that anyone who has ever worn anything like that has worn it because the appreciate the culture so much and want to know more about it or visit the country it originates from, not people they're wanting to make fun of the culture.
If I'm honest, the only people I've ever seen complain about this issue are people who have no right to complain on the matter and, by that, I mean people who wouldn't wear such items in day to day life. They claim it to be "disrespectful", but do they really have any right to comment on the matter? I have friends who wear bindis or have the option to wear one who honestly do not mind if other people wear them, as long as they're being respectful and not demoralising the culture.