The only game where the outfit takes damage is Batman and no other but we don't really make farfetched theories about any of them.
Why does Dante's wardrobe have to mean he's nuts? Why can't he just be normal and go and buy the clothes he likes just like everyone else? :| I mean, I personally have two very different styles (one casual jeans, t-shirts, etc. and the other very out-there, over-the-top gothic/victorian/latex-and-leather kind of stuff) and I don't have a split personality. I just wear different things depending on my mood and where I'm going. For instance, I'd never wear my vinyl ball gown to my great gran's house and I'd not wear a top hat and corset to a job interveiw (unless I was applying for something it'd be allowed in) nor would I wear jeans to a nice party. Why is it so hard to believe Dante's the same and his clothes are determined by what he liked in the store and what he felt like wearing that day?
/endrant.