So, it's worse than an actual outfit, as it provides none of the bonuses that a real outfit does?
Such as, a Cold Weather Outfit, which grants a +5 circumstance bonus on Fortitude saving throws against exposure to cold weather.
I wouldn't say so. It transforms your clothes. It doesn't Glamor your clothes. They really would become Cold Weather Clothes, so they really would give you your +5.
But if you were naked, your Sleeves would have no clothing to transform, and just be left to shiver.
I agree with this.
I'll give another example.
I have a character who is an Oracle with the Wrecker curse, which gives everything you hold or wear the broken condition. There's no mechanical penalty for clothing having the broken condition, but they still obviously *look* tattered.
I had planned on giving her the Sleeves of Many Garments as a way of making her be able to *appear* to be well-dressed, but because of the way it's written, that won't work. Because it is making actual clothing, a round later they will gain the broken condition and be trashed again. Whereas if it were actually an illusion, they would continue to look pristine.