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For sports shirts the advertising is literally part of the shirt design, if you remove all adverts with a razorblade now you'd wasted a lot of money on a shirt with huge holes in it.

A friend of mine used to do this with products that self-advertise when he was younger (I notice his Tilley hat is unmolested, presumably he had now stopped), but it doesn't really make sense on say a reproduction football kit.

That's pretty extreme. I just buy stuff that is very minimalist with the logo. A small "swoosh" doesn't really bother me.

I reached a certain point and decided that a plain single color or striped cotton tshirt from kohls looks and feels as good as any plain single color cotton shirt that might have a swoosh on it. Bonus the no logo version is usually cheaper as well.

Is it actually extreme or is the overton window just beyond messed up?

Eh... gigantic logos on clothing have existed since the 70's. I do agree it's gotten WAY more prevalent from the 90's onward.

Hah! Someone else who does that!

(Or at least I did, for a couple decades...)