If you've taken a look at
this post, then you will see a snippet of fashion from each of the four major races from the test server. The only one that remarkably looks different is the Amarr...otherwise, the overall fashion aesthetic with the Incarna stuff is "post-contemporary"; you can easily see these clothes appearing on the market in 50 years time (hell, much of EVE's domestic technology, spaceside stuff aside, is similarly 'post-contemporary'). This is contrasted against the more flamboyant stuff we have now, pre-Incarna.
I've noticed some people are quite unhappy about this...they much prefer the distinct/caricatured nature of the previous portraits...Amarr in robe, Gallente in plastic, Minmatar in rags, and so on.
Personally, I approve of the move closer to realism, though this is purely based on people's tastes on immersion. I am more immersed in a realistic, alternative universe, others are more immersed in a fantastic, alternative universe. I'll look at the Gallente fashion; on space stations, ships and modern Federation cities, Intakis won't be walking around in robes, and Jin-Mei in ceremonial armour. Even look at Seriphyn's clothing in-game. Seriphyn NEVER wears that, but it's the only thing I could pick. Unless you're in a rural environment, or a traditional setting, the 'modern' fashion style will prevail, or unless you're in a particularly fashionable locale like Crystal Boulevard.
This applies positively to Amarr. If Amarr stuck with robes instead of their embroided jackets/trousers, I think the stereotype of "lolmedieval" would prevail. Now, for me, the Amarr Empire just seems more believable, and not a bunch of priests and monks dancing around on ships, with torches as interior lighting.
In terms of physical looks, right now you can tell when someone's Intaki from Ni-Kunni. IRL, you could not do that. If I stepped outside and pointed to some random white person, he could easily be Polish, not English. For example, you can't tell if I'm north Indian, Arab, Mexican or native American. In fact, I'm neither of those, and am half-white. You can't tell this at all.
I personally welcome the fact that you can't identify someone without studying them intently (ie. skin tose, nose, jaw size etc.). It certainly beats the whole "lolAsian", somewhat outrightly racist caricatures we had going on lol...and the end of Gallente women waiting for the bus in a big rubber dresses, the True Amarr man working in his office cubicle dressed a in a robe and hood, and an Achuran woman doing the dishwashing with an earpiece and monocle.
Another RL example. In India, you have sarees and various headdresses and whatever. People do not wear this day-to-day. The same way you can take an elaborate Scottish kilt; yes, it's still Scottish, but people do not wear that to work. Even in India, a man going to work in a village will put on a pair of trousers, not some elaborate robes that will make us go "Lol indian man".
I think this is CCP's aim...to create a 'realistic' universe. So, personally, I welcome this move, but would be interested in hearing why people disapprove of it.