Bike shorts can do a couple things .... first, the chamois can help prevent saddle sores, which really suck ... especially if you get them early in a tour.
Second, they can keep the dangling modifiers up and out of harm's way. I never even considered wearing those (insert no-longer-acceptable sexual orientation slur)-looking spandex pants—I was fine in cargo shorts---until something important slipped between my thigh and the seat as I made a full-power acceleration into traffic. The impromptu vice worked perfectly, providing maximum crushing force where it was least wanted. I ordered cycling shorts as soon as I got home.
You can still wear cargo shorts over spandex--but between not abrading holes in my buttocks and not crushing my grapes, I'd say the benefits of cycling shorts have won me over.
Any sweat-wicking clothing works .... I have a bunch of Hanes Kwik-Dri (or whatever) T-shirts onto which I have sewn back pockets because real jerseys can't be had for sane and sensible prices any more. Yes, the jerseys do the job a little better, but unless it is very hot or I am planning a longer ride, the t-shirt is good enough.
Gloves---I find when I don't wear gloves my hands get a little sore after a while--I guess even the minimal padding actually helps, even if it is mostly vibration absorption.
As with most things .... whatever works for you, works for you.
I could not care much less if I "fit in" with other people, but I care very much about my comfort and the functionality of my clothing. That doesn't mean wanting to "fit in" is any less important or valid. Some people think certain clothes look stupid, some people think those clothes look cool (some people think wearing your pants around your knees is the coolest .... man, kids were dumb when I was kid but they are Much dumber nowadays.)
Wear whatever you want, but if you find issues, look for alternatives ... but you don't need me or anyone else to tell you that.
One word on "You get what you pay for": yeah, if only. Fact is, you can spend $300 for bib overalls or you can spend less than a third and get the same quality .... just not the same brand name. You can buy $30 socks or $3 socks ... sock technology is pretty much fully developed and maximum sock-tech can be achieved in the $3 socks, but again, no cool logo. You can get generic jerseys or ugly jerseys no one wants on close-out, and they work the same as the $60 jerseys or the $90 jerseys ... but if you want to wear the kit of your favorite trade team, you will have to pay up. Doesn't mean the expensive jerseys are made better .... might even come from the same factories---but you get to wear what you want.
I have found that if you go Super-cheap---Ali-Express, made-in-China cheap--- Then you will get what you paid for, which is you paid to get used, and the clothing you get might be so flimsy it is amazing it didn't evaporate during shipping. Once you get a few quality levels above that, the stuff all tends to last and work about as well.
In my limited and possibly deluded experience.