LotRO does have a nice Wardrobe system with cross-weight combinations available, but it is not free (except for VIP players/Subscribers). You need to buy Wardrobe space etc. with the Turbine points that can be earned through in-game achievements or from real life cash, and the LotRO cosmetics have taken a lot more of my storage space than the ones in GW2 ever have (due to limited wardrobe space).... Here we have all our unlocked skins freely available with just the small limitation of charges that can be easily acquired through exploration etc. I still like cross-weight combos, but otherwise I find GW2's Wardrobe system better atm.
Many games "DCUO, LOTRO, SL" have FREE wardrobes "after skin unlock" and still make money. A free wardrobe would help push more gem skins than one that limits your inventory. It also expands the player base to people who will spend large amounts of money to make their character look good.