Dreams.

Nothing like that.

Exactly, and the shape is almost the same (a single garment covers both the upper and lower body at the same time).

a) decent

What exactly do you mean by indecent?

For example, in the case of your elf avatar, it makes sense for her to wear chainmail (light, elven, but covering the entire body from arrows) and a dress (but not too low-cut, otherwise it would be inconvenient to move around), or perhaps a cloak with a hood.

But maybe she doesn't need chainmail to protect herself from arrows, not everyone encounters bandits or anyone else every day. But she does have high boots that protect her from moisture! In reality, attempts to find practicality in fantasy seem a bit strange; everything is up to the author.