I'm not gonna say he doesn't deserve a bit of a fancier outfit, but I will say that I think his clothes do a weirdly good job of fitting three specific roles that he has to fulfill, that don't necessarily line up.

1. To look like a sad, out-of-place street urchin in the colorful Solution Nine,
2. To aesthetically fit in with Tuliyollal and their relatively simple outfit cuts,
3. To aesthetically fit in with Oblivion and their drably-colored, purposeful coats.

He actually does manage to successfully fit into all three of these contexts, even if he doesn't do it in a flashy way.