I honestly don't pay much attention to the clubs that people use. I could not tell you the brand or model of irons & wedges the two other guys in my threesome today were using today. I remember their drivers and putters, but that's it. As far as bad golfers dressing like pros - it doesn't bother me at all. I'd much rather see someone dressed well than wearing shredded cargo shorts, no belt, and their shirt hanging out.
QFT. Maybe it's because I spend all week wearing a combination monkey suit/pajamas:
I like nothing else better than putting on something that looks like they put some effort into it. If you're wearing plaids & stripes, at least you're trying. It's not ego, it's pride and enjoyment in the sport.
Clubs I care about for my bag, but most of my playing partners are joes like me, or retirees. Money's tight, and people like the clubs they like. I know guys that make 10 year old irons work, and a friend that puts a 3 wood made of wood into play on autopilot. My fairway woods are almost a decade old, and I feel about them the way Charlton Heston felt about his rifle. My pride kicks in when I start thinking about getting on greens a shot earlier than I need to and trying to get in scoring position with decidedly non-scoring clubs.