But ... I'd much rather they improve the gaming parts before they improve the video parts.
Sure, but it's done by different teams. Not that I'm saying casual clothing must be priority for artists, but artists won't do much about gameplay mechanics.
Now that you've pointed it, ... ok. I mean, still, if the studio can in any (human-friendly) way allocate more working time or thinking time to gameplay, I'd rather they do that.
But as far as the video team is concerned, after the design artists and animation artists have ensured that characters don't do weird contortions in cutscenes, that they actually face each other, that the camera doesn't show me the scene from behind somebody' back, that the objects people handle (guitar, bottles of wine) are actually displayed and somewhat credibly handled, etc, if they can work on more clothing (and swords on hip, etc), why not.