I think Jason nailed it. I would expect NPCs to be properly dressed on an RP mud. However, on Necromium, I have never asked our builders to do anything of that nature. We are heavily H&S, and the extra junk items just cause clutter.
Of course, I think the main thing you need to achieve is consistency. As long as all of your NPCs are designed the same in terms of clothing (ie they have it or they dont) then you should be alright. However if you just have one zone with naked NPCs, it is going to look terrible.
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