To each his own, I say ...
But personally I draw the line at sandals. Firmly. A sartorial faux pas of extraordinary magnitude. On the beach, when no one is watching? Maybe. But in the out and open? No sir.
My favorite cycling shoes for riding in town: hand-made Italian eel skin. And no, they have no SPD cleats.
On a more serious note: I like wool jerseys and shorts. Good-looking, comfortable, and the back pockets are very useful indeed. However, I find I don't really
need them, at least not for the kind of rides I do: mostly leisurely rides up to 100k. And when touring, there are advantages to wearing "normal" clothing. Like when you ride into a town, and want to have lunch in a decent restaurant.
WRT shoes, I find these a good compromise. Classic cycle touring shoes. They are made for clips and straps, to be used without cleats, and - sort of - work well with both formal cycling apparel (wool), and a more casual outfit:
I have them in brown and black, of course.