I have said this before and will say it again: As long as all the costumes/armour seem to be from the same world I am totally fine with them.
Everyone wearing realistic armour? Cool, that is my favourite. Men wearing "Conan the barbarian" loincloths and women in chainkinis? Silly, but I'm ok with it. Everyone dressed up in revealing weird anime fashion clothing? I can see why a lot of people don't like it but it is not a big deal. Mixing up these? Not cool. The standard MMORPG divide with men wrapped up in armour (that has weird, huge pauldrons) and women in revealing "armour" is inconsistent and that breaks my immersion.
I am disagreeing with Ironchew (again) about the FF games though. The earlier ones had armour that was more "covering" type than the modern ones (even if you only saw it properly in the artwork) when the theme was "medieval fantasy with a bit of steampunk." The later ones have had worlds with more technology and more modern or futuristic clothing (with less and less use of armour.)
There have even been grittier heroes with facial hair in the series. FFV is the first to come in my mind, having an old guy with much facial hair as one of the party members. Oh, and FFIV had this guy: