The "everyone is satisfied" option already exist : mods. Want to turn you equipment into something else, sure! Want to turn your character into Shrek? Go ahead! Want to make your companions nude? A pervert has probably already done it somewhere.
We shouldn't need modders to come in from behind to create and maintain basic features. Games shouldn't continue to become DIY hobbyist kits. Its also a very long distance away from "everyone is satisfied" given the lack of modding availability on most platforms, and the lack of engagement from most users on PC. Compare the unique downloads for the Unofficial Skyrim Patch to the number of copies sold on PC. Modding is great, I mod, but most users don't engage with it at all, even on PC, even on games with a much larger and stronger modding community.
What is it that makes sense to you about swapping out plate armor for a wizard's robes?
The fact that it gives the player something, and yet takes nothing away, and there is therefore no logically coherent and sane argument against it. If you want your plate armor to look like plate armor, in every outfit/transmog system that I've seen in the last decade and a half, you'll be accommodated. If you think the plate armor looks bad, and want to preserve your character's aesthetic without sacrificing playability, you'll also be accommodated. It is all upside, no downside. I don't know if you've just never encountered such a system, but items don't cease to carry their own appearance when players are given the option to override that appearance. This has been the standard implementation across the gaming industry for a long long time.
If you're trying to make some sort of realism argument, I'd recommend the people concerned about that deal with it the same way they deal with everyone taking turns, at-will time freezing, save reloading, humans with naturally purple skin and pink hair, magic mini maps, half naked barbarian men tanking crossbow bolts to the bare chest without lasting injury or death, and all the rest of the various concessions already made to being a video game with customizable player created characters.
Makes loot meaningless and turns rpg into a dress up simulator.
How so?
Without an outfit/transmog system, you collect items which give your character various stat boosts, abilities, and also alter your appearance if equipped.
With such a system, you...collect items which give your character various stat boosts, abilities, and also alter your appearance if equipped.
Where's the change I'm missing that rendered all loot meaningless?
I'm honestly surprised to be encountering any resistance to such a basic, universal, no-loss feature. It's like having someone argue the game shouldn't have the ability to save progress or remap key bindings.
