[2021] I'd like to see a cosmetic option at least optional.

You're right that PvE is the bigger driver for how they develop the game. In the next Alpha, the clothing and armor system will be overhauled, so don't get too attached to anything you see now. The two will be combined into an 'outfits' system with fewer pieces that serve the purpose of both clothes and armor, with bonuses for wearing a complete set. One goal of the new system is to eliminate any visual oddities where one item sticks through another.

To be clear, I'm just the messenger here. See the Alpha 20 Dev Diary in text and video form for more information.