Hmm ... odd then that all the other faction member wear the armor then isn't it. Not that I would try to make reasonable sense of half the things wrong with what NPC's do in this game. So yeah, for role-playing I wear the faction armor. Since NCP's are basically total idiots there isn't any real reason not to. Course I could pretend for role-playing reason that I shouldn't wear Thieve's Guild or Dark Brotherhood armor out in the open, but then I seldom ever join those factions anyway.