Whatever happened to that saying "It's not the clothes that make the man"? I, personally, think it's a shame that the child is being raised to think that the cost of the clothes she wears in some way indicates her worth as a person.
As far as I'm concerned, if the clothes are to the taste of the person, clean, fit neatly, and are locale/event appropriate? Good enough for me.
My oldest went through an "emo" phase, wore mostly black, used eyeliner (believe me, it is very odd to shop for make-up with your son!), etc. However, every Sunday, w/o any prompting apart from one discussion, he shed all of that to put on a suit and tie for Church, and then something "nice" for dinner at the grandparents. Then he went off the emo phase, and that was that. Just not a hill to die on, IMO.
But then... I'm the one who will run to the store with a pair of sweats and a tshirt, a baseball cap and sneakers w/o a second thought. If someone wants to judge me for my clothes? It's their loss, not mine.