No you get armor for your class with the right stats, but you have a second slot option for the armor others see on you - so your jedi can look like a smuggler or your smuggler can have heavy armor on, but still have the right stats for them in another slot. It's basically a utility armor slot and a aestethic one - I find this the most elegant solution tbh. You can look like whatever you want and still have the stats you need.
I understand, I played a lot of ToR. What I mean is that you find the look you like and then you get ''stats'' that you put into your equipment slots. It just removes that feel of finding good sh*t you know? You go through the dungeon, open a chest and find +2 AC, while you still look exactly the same. Like I said, it's an amazing option but also very ''gamey'', I would not be opposed to having this option, just would have to roleplay in my head really hard.