Toi: Why so cynical? Don’t disregard the Gemarah just because you don’t understand the Rabbonim’s response to it. What we need to do is figure out how this all plays together.
What the Gemarah appears to be referring to is a mentality in which a person takes his own measurements of Kavod or of proper, refined attire, and blows it out of proportion to the extent that he views others who don’t follow his protocol as “not as frum”, or as lax in their commitment to Yiddishkeit. Of course, a person has to delineate for himself what he feels is “doing his part” in regards to Kavod and Gadlus HaAdam, but to impose those views on others or ?”? make it as ???? as compliance with Halacha, is going past the red line. Now, a large amount of the Rabbonim have determined that, for a variety of reasons ranging from being distinguished amongst the Goyim, to reasons such as giving a broad definition to what is considered elegant dress. But we should never conclude that someone who does not view it in that way as someone who is compromising Halacha, so long as he maintains elegant dress and continues being a Kiddush Hashem.