I did notice some little father christmas outfits in pets at home a few weeks ago and briefly considered the few minutes amusement I'd get from seeing my cat in one, however the desire to keep both my arms attached to my body won over in the end.
If the clothes are for a purpose, such as blankets/coats for cold or wet wear I think that's fine but I do hate to see dogs being made fools of! although it's very much each to their own point of view. I had an email from a cousin recently showing loads of pictures of dogs being dyed various colours and I just felt so sorry for them - they are dogs, for goodness sake.
Jetspoon was quite happy to 'dress up' (wouldn't have taken her out though-except Christmas morning when she had her reindeer antlers on to go to pub) Coco won't have a bar of it!