The actual percentage of the population that would look good naked is surprisingly small. I personally wouldn't mind if everyone was built like Brad Pit or Kelly Brook, but we all know what a typical American actually looks like.
It'd be a good incentive to maintain the old physical appearance.
And hell, after a few weeks, you wouldn't notice anyone except the truly gross, anyway. If you grew up with it, you'd never notice it at all.
It's weird that we started off without clothes, and developed the technology to protect ourselves, and now that we no longer need the protection most of the time, we cling to it as if it were instinct.