We Italicize in Chicago Style, DON'T WE?
As I suppose is the case at most schools, we are supposed to do everything in a special university-sanctioned format. Whether dissertations are in that format is not of great concern to dissertation committees so long as the said dissertations are legible and have citations and chapters and all that sort of thing, but once the committee signs off (after the defense), then it all has to be shoehorned into the template if it was not already template-ized.
Overall, I think the idea of a template is quite helpful. But life could hardly be so simple as to offer smooth template-ization. The template is in Microsoft Word, meaning that at some level it is supposed one will write in Word. Of course, not all of us choose to write in Word. Generally speaking, pretty much any word-processing program's output can be converted to a Word document when necessary.
I was not too happy, therefore, when I copied my bibliography into the template and found that applying the "Bibliography entry" style to it had to be done in pieces (apparently it was too long a bibliography for Word to tolerate doing the style all in one piece), and then, much worse, that the "Bibliography entry" style turned all my italics into Roman. The thought of manually re-italicizing 50 pages worth of bibliographic entries really does not appeal to me, but I suppose it must be done.
The grad student's work is unending.