The suit I own is too small and cheaply cut, yet so many people that see me wearing it comment on how dapper I look. I just don't know how much the average person can pick up on this thing.
They say that, presumably, because you look better than you normally look. Also it so happens that wearing things too tight seems to be 'in' at the moment (see the 'photographs of posters' thread). But I'm sure
some people do notice your suit's shortcomings, and in general those will be the people placed higher within the social pyramid.