Yea, I like it the way it is now. Every cahracter has a unique look. Being able to equip the same type of armor on 2-3 or more characters (which happens in most FFs) thus changing their appearance to match the armor would take that uniqueness away from the character. Changing the shields and swords are perfect enough. Alot of what RPGs are about is being able to use your imagination while your playing it.
About FFXI: the main character is supposed to be you. There is a party based system and it neat because you can set up a party the way YOU want it to be, or someone can ask you to join thiers. It is a FF game, no doubt. Its just alot harder than the single player games (the single player games feel like they hand feed you most of everything in the game). But yea, the main characters is YOU, the character YOU created. Thats why you see yourself in the cutscenes and not the other players.