Re: theatrical attire onstage
Really, if you think like your audience instead of musicians, a band will be percieved as "better" if they are fun, interesting to watch, and more entertaining. Like it or not, the music takes a back seat to the show from the audience perspective.
Compare that to a band who is musically better, but not fun to watch, doesn't engage the crowd, and generally just stands there playing great sounding music.
The crowd will go see band #1 before band #2 every day of the week.
I think it's a good idea to try and be entertaining, no matter how you do it. (interesting garb, good repoire w/ the audience, fun to watch)
But you can't force it, it has to be something you all want to do. Just do your thing Dios, at least you have a vision, it can't hurt.