Just because previous games didn't do it right doesn't mean this one should, especially since it likes to play "down-to-Earth fantasy" card. The more realistic graphics get too the harder it is to maintain suspension of disbelief in this case. When Terra goes to battle wearing socks and a bath towel, well she's just a sprite, you can overlook that.
Cast of FF8 is pretty disgustingly awful. It's almost 100% teenage audience appeal. None of the characters in FF8 are equipped, visually or psychologically, to deal with the storyline they're put through. Even FF13 does this better. Yeah, it's not exactly combat wear, but there's thought that went into what the characters looked like - Eden staff has this retro-futuristic garb, Lightning wears a uniform, Vanilla and Fang are dressed in their native(?) clothing. Noctis' friends are his bodyguards essentially? But they dress like a Japanese boy band. Ehhhh.
FFXII and FFXIV really skewed my opinion on how a Final Fantasy should look and operate.