Don't care what a character wears as long as they behave like what they wear. The japanesse obsession with whores that are prude one moment and dress like they are on their way to a gangbang moments after is immersion breaking an plainly annoying.
If they dressed like whores and behaved like whores then that'd be fitting.

For player characters? There should always be an option of both, for both. Everyone should be able to have whatever gear they fucking want.