lol I actually forgot about scroll wheels for a second. I read the forums on my phone at times.
Anyway, from what I experimented with, I'm pretty sure that people should be satisfied somewhat on the front you talk about. For instance, the leather rogue armor (+dodge%) looks different from the heavy plate armor that elves (or any race) can wear. That's different sets along the spectrum of "melee scrapper." I don't know if the same holds true for the mage side, but I assume it should in the long term. Mage robes obviously look different from plate armor that has some magic armour, but I don't know if that same plate amour varies enough from regular just physical plate armour as part of different morph set or if the amrour is just different due to level and stats and RNG.
At the moment, I think the amour look comes from the type (ie. robes, leather, plate) and the defenses and stats (ie amount physical/magic amour, resistance) and the race and the level. How extensive that is, is the real question.....
I don't quite like what I've seen for elves so far, but I'm not sure if that's just cause of the limited content or the style itself. Some people bringing up how little protection it looks like...well, I remember the amount of protection the armor in D:OS EE looked like it gave from level 1 to level 20 on a warrior changed alot over time. It evolved based on item level to look more stout and 'cooler' for lack of a better word. The low level elves might look naked simply cause they're a stylized showing of how fragile they are currently.