I think we should be able to hide appearance for all the stuff the avatar can wear. Helmets and Cloaks are obvious, but the other equipment sometimes clips too.
Capes and armor sets that have lower robes (likes Halsin's) show the most clips for me.
Hide appearance for something like armor or boots wouldn't be very satisfying though it could just show the camp underwear for whatever. Having more control over that look would allow for the avatar to hide whatever equipment slot and show the "unarmored look" whatever it was. So maybe you know, with hats and gloves and boots and such there so the player can still make a decent look and just roll with that in-game if they don't want to show the armor but still get the bonuses. I think more freedom to craft and color our camp threads would be nice. Companion NPCs got some decent threads there, but the PC just has the run of the mill options.
For capes the clipping at the back could be fixed if all the weapons didn't hover on the back.
They should do a Utility belt expansion, adding belts to the game along with some UI love and some directors cut stuff. A little suite to make portraits and 'unarmored' char appearances. Do the same for familiars and animal companions, and load up on char creation type assets. Dress em up mode basically. Meantime yeah, just an option to turn it off I guess, same as the helmet.