I hope to add a drag-and-drop inventory screen to a sequel, but I don't want to even think when THAT is going to happen. In most contexts, it is assumed that the player always uses the best item they have in their possession, so if you have a basic axe and a good axe, the game will always assume that you grab the better one when you have a chance. There's, for example, one Cloak upgrade available in the game, but until the player gets it, their old cloak is present only in the game's narration, then new one is always used by default. The armor is also always used while PC is in the wilderness.
There are some scenarios when the player has to select through an in-game choice which item they want to use. For example, during some combat scenes you may select either a crossbow (if you have it), or a shield (if you have it), or a spear (if you have it), or a wand (if you are a mage and you have enough mana to use it) or a different relevant item, and the game doesn't make it obvious which one of these choices is an optimal one.
The "fancy outfit" won't use separate parts, but it's going to be possible to lower its price by delivering to the tailor useful components, such as pieces of jewelry, hide, or linen. It may be that I'll add some magic shoes to the game, but until I have a good idea how to utilize them, I won't add them just for the sake of complexity.