Yes it does! Why do I say that, because when your Rp'ing and someone walks right up to you and has the same exact outfit that you have on, it kind of makes it hard to take anyone really serious. It sucks not being about to actually change the color of our armor, not to mention I really think they need to put a type of "street" clothes into the game and be able to change the color of that. I personally don't like looking the exact same way someone else does. It's annoying as H3LL!!!
The problem is that in my experiences with dye systems it rarely works out the way you hope.
In EQ1, I was playing that game when the dye system launched. Do you know how many characters were all black, or white or red? I would sell cleric buffs in Plane of Knowledge and there was once TEN characters all in black in line.
And I got one better. My three friends and I saw this trend and decided to "go rainbow". every piece of equipment we wore was a different color. And we even worked it out so that no one piece amongst ourselves was the same color (one character had blue chest another had a yellow chest a third had red and the fourth had green). It was god awful looking but we definitely stood out
Now because we were only four (BTW we had the perfect group setup - warrior (tank), cleric (heal), enchanter (slow and CC) and druid (DPS and CC) and were all in a hardcore raiding guild. So we could bring any two shlubs who wanted a group with us) and the standard group for EQ1 was six we would bring in random players to fill our group. Eventually enough players saw us and wanted to be "different" than everyone else, that total strangers started copying what my friends and I had done to actually be different. Eventually our attempt to be different failed.
My point is, you would be amazed how often different people have the same tastes.