I've only seen ANBU in the Chuunin Tournament (the last part of the exam) and the masks seemed quite traditionally japanese, it reminded me of Grandpa Gohans mask in DB or Yoshimitsu's Kunoichi's mask in Tekken 2...anyway...
I think they were supposed to be inconspicous because of the hood that covers them, but I do agree they couldv'e been cooler, considering the general coolness of Naruto. Plus, they were very distinctive, people seemed to know who the ANBU were (the organisation not the people behind the masks).