It definitely beats the odd ritual my characters go through right now. They strip down to their underwear.
First thing I do when I hit the beach actually. Unless I'm a dwarf.
how it would change their stats, with green being increases and red being decreases and giving a description of the item at the bottom. It was a very elegant system ...
Larian should seriously use this system, it is much better than the one currently being used.
They had the red/green thing in DKS (only for one character as there was only one). It was nice but the description tended to overwrite the increase/decrease especially with the sets where the description went on a bit.
The problem with your idea is stats aren't on one screen in this game. You have different tabs for attributes, combat abilities and civil abilities.
I can for example change an item giving immunity to something (that is never shown anywhere at all) to another item that gives a point in thievery, a point in intelligence or a point in single handed all of which are on different tabs.
I guess the reduced information on one screen makes it easier to fit to a console version. It would be pretty cluttered if you had everything for one character let alone 4 on the same screen.
It would still be nice if you had the red/green thing for changes to the attributes shown on the screen you are on though..