You need to evaluate the New York Dolls in the context of the era in which they existed. Sure, they seem pretty tame by today’s standards, but this performance is less than 10 years out from The Beatles wearing suits on Ed Sullivan and still being considered racy.
Without the Dolls, we probably don’t have Hanoi Rocks and all the 80’s hair metal bands. Say what you will about that era and style of music, but the fact is that the Dolls influenced an entire generation of musicians that followed them. That’s no small thing.