People used to dress so much better throughout history for one simple reason.
Your clothing was always something that was made for you, it could have been someone in your family that knew you and would have put care into making a garment for you that you would wear for years.
Now the majority of people's clothing is made for us by corporations, sewn by people halfway across the world working on a slave's wage. People have been seduced into becoming advertisements with no care for craftmanship or the artisans making the garments.