I think the author nailed this one on the head. It 'could' be cool, but it just isn't. There is NEVER anything free that you can add, and, I'm sorry, there is no point to paying for anything, none of it is worth it. I don't wear Diesel clothing in real life, why would I pay to have a digital rough approximation of myself wear it? There is no reason to hang around my "apartment" in game, especially when my real house is so much nicer... and has a hot girl living there to boot...
I was a long time 360 fan boy, I got a PS3 for this past Christmas from my wife, and I have to admit, I've really tried to like it, as it stands, I only have 4 games for it, and every time I try to give "home" a chance, I always am left with a resounding feeling of "meh". It just isn't that fun, you see a dozen punters trying to hit on one of the "girls" in any odd area (girls is in " b/c I'm sure its just a weird guy with a girl avatar...). While XBL doesn't have a social networking area, the avatar system is a vast improvement... mostly b/c you don't have to buy new clothes. I've also read that several new games are working on connecting achievements with special outfits, so when you earn one, you get the outfit for free. Kind of dorky, but I like the earning idea. Which brings me to the trophy system. I'm something of an achievement whore, I like earning them, and am willing to put in a little extra work to hear that blink noise, and see my score go up by 10 points. Trophies, on the other hand, aren't connected to anything, and don't show up any where unless you specifically look for them. They have always felt to me like an after thought (as they pretty much were, odd since the PS3 came out like 2 years after 360, which launched with achievements...)
I guess what I am saying is that I think some more free gear would be nice. Don't make everything free, but enough to give the world a little flavor. And the idea of connecting trophies to earning stuff is a great idea. It might be nice to have some kind of trophy score that showed up w/ your PSN name too...