I'd argue that we are, because cloth of higher quality than anything that has ever existed before is available today, it's just really expensive. But high quality cloth was also expensive back then.
I think you are making the error of comparing cheap clothes of today with expensive clothes of the past, rather than cheap clothes with cheap clothes and expensive with expensive. People of the past might have had higher quality clothes on average, but its because those clothes were expensive despite being the cheapest available. Trust me, if Shein was around in 1780, everyone would be wearing that garbage.
On the other hand, you could not buy a Gore-Tex Pro shell or an ultralight down jacket for any price in 1800.
I don’t disagree that there are a lot of gains, including on net, just that it hasn’t been a pareto improvement with no losses at all.