I'm fine with the movie being dumb. I grew up in a house where the original Street Fighter movie was in regular rotation in our VCR, along with Mortal Kombat and it's sequel and Super Mario Bros. I just hope, like those movies, it's dumb in a way that's also brain-numbingly entertaining.
And this outfit thing has GOT to get worked out. Here's hoping they take the Street Fighter route and start with everyone in normal clothes, then through a series of increasingly improbable twists, end up with everyone in their videogame clothes for the final battle.
One final note: I swear, there is NO place left I can go that Tvtropes hasn't invaded. Thanks a lot, Funk, now I'm going to be trapped for hours, and I have to take my sister to the SATs in the morning.