Cheesy wizard hats, hoods, fancy hats, fancy wizard hats, crowns, tiaras, more fancy wizard hats.
We need everything!
You may be being sarcastic here, but I don't see why we don't in fact have many options. I loved the various different armours/clothing in Morrowind, and I was sad that it wasn't expanded on in Oblivion. I'd love to have more head clothing, instead of just hoods and armour. I think there's a tad too much of the avoiding cliché's going on. Sure, it's nice that our Dwarves are in fact Elves and what-not, but sometimes cliché's can go well. Personally, I think the "cheesy wizard hats" help portray the wizened mage image well. :shrug:
It's not like everyone would need one.