There's nothing 'wrong' with it per se. I just don't find it terribly interesting. I want the Doctor to look different and to stand out. The perspective of we 21st century viewers is as important as the fictional characters meeting him and, by and large, there's a tradition that the Doctor looks eccentric to our eyes. Eccleston's garb was conventional but that was partly to make it clear that the new show 'wasn't your father's Doctor Who' and partly to reflect his somber character.
Put a young good-looking guy like Matt in conventional clothes like that and he loses a lot of Doctor-ish quality, IMHO.
I can see where you're coming from but the costume Matt Smith ended up wearing is really not that different, it's basically a hipster look, all that's missing is a pair of glasses. It's very modern in its old fashioned professorness.
Another problem is that we risk getting another sixth doctor clown coat if they try too hard to make him look different and stand out.