Poodles were at one time great hunters. As for their hair cuts, it was originally done by the estate owners in France to designate their dogs in the field. So different land owners dogs had different "doos" when running together.
I have read, (but cannot reference) that the "silly cuts" actually evolved from hunting. The hair was kept longer over the joints to keep them warmer while the rest of the hair was cut close to keep down on briars. Hence the pom poms on the ankles, knees, hips, shoulders, neck, and such. I'm sure the French took it to extremes.
