I remember in Morrowind that getting out of your armour when entering towns was an important thing, if you wore cheap slave cloths or rusty armour, peoples disposition towards you would lower, and they would even make comments on it when you walked past. On the other hand, if you wore exquisite clothing, people would have a higher disposition towards you and would make comments on how nice your clothing was. For some strange reason this hardly had an effect in Oblivion in comparison to Morrowind, and i would love it to be given some attention, for the sake of immersion.

Within reason yes.

I myself would like to see something along the lines of group hostility towards opposing NPC attire.

If I run around the Imperial City in Daedric Armor, you think someone would get a little suspicious.

Just saying...........

Or running around town in a necromancer robe.

Or running around in your underclothing.

Especially if your wearing a guild oriented outfit, and you run across a group of rival guild members. A conflict ensues.

There was a thread yesterday on nakedness in towns said much the same thing, and I pointed out the comments might be as annoying as mudcrab sightings and guards saying stop for the scummy crime of moving tan cups after a while.

Hmm... I do remember that Mages Guild members get pissed off (and make comments about it) when you wear a necromancer robe (and talk to them). I think that's all related to NPC reactions/deposition to clothing.

So they should really just make it more of a response. And with Radiant Story. Its a good Possibility.

Yes thats will be good Morrowind have it, Morrowind even have check for initiating dialogue with weapon in hands, seems in Skyrim AI will be much better so thats feature can be done.
For Oblivion I use
Clothing matters
http://tesnexus.com/downloads/file.php?id=22653

I personally quite like npc disposition being affected by what your character wears(or doesn't wear as the case may be). I always liked some of the snide comments from npcs I would get in Morrowind if I was say, an Imperial talking to an Orc whilst wearing Orcish make armour; a few of them got quite aggressive about it in certain dialog options.