Second, I bring good news. We've sat down and gone through this entire thread and taken a look at your suggestions. With our next update we're going to make some changes to the apparel dummies as follows
Apparel Dummy is no more. They'll now be called Mannequins
The sparkles and glow will be removed
We'll be removing a number of the Mannequins from the game in some of the places we agree are inappropriate. Such as Lothlórien and Rivendell and a number of others.
Finally, we'll continue to make adjustments and see if we can't incorporate some of your ideas in future updates. We're even considering allowing players to decide on which cosmetics they should wear or possibly design outfits for them.
And before anyone asks, they aren't moving inside with the next update, but it's a suggestion we're considering.