Hi SoUnreal,
As you can see from the replies to your post, this is quite a heated subject! Outfit tournaments was an idea recently suggested by the Devs as part of their 6-month plan - you can see the idea and join in the debate
here.
Personally, I think that Outfit tournaments and competitions would add another layer of depth to the game and would be a great way to advertise the game to new players who haven't heard of it before. That only applies if the competitions happen infrequently enough so that they don't affect the population of the main server.
That's just my opinion. I think you'll find on this forum that more people are against the idea than for it!
Sonny