First off we have all been guilty about buying something in our lives that can be seen as completly useless. A LOT of people will say buying clothes for your avatar is a waste of money but at the end of the day its not their money spent.
I love all the clothing options but right now its hard to differentiate yourself from another gamer. Over time (with the free clothing updates) this will get less and less of a problem.
However if they bring out awesome costumes like Pirates, Ninjas, Game Characters ect I DON'T want them to be free, they will get completly overused and will lose the spark of having them.
I can't wait for awesome paid avatar clothing :)