I don't think Hillary's pantsuits looked bad on her, and I doubt they cost her many votes.
I thought Palin looked really good in her new duds. Better than Cindy McCain or Michelle Obama, even. Not that this is in any way a qualification for public office.
The answer to what will Palin do with her new wardrobe is whatever she can get away with: they might take it all back, they might take some of it back, they might let her have it and 0say they took it back and gave it to some charity. I really don't care personally. As I said, if they were clever, they could auction her clothes off and get more back than they cost. Of course someone would make a nasty comparison to the Romans auctioning off Jesus garments, and that would be bad PR for some people for a day or so. I am pretty sure that Palin will wear her clothes if she gets to keep them. I would lay 4 to q odds that she won't.
Michelle Obama dresses nicely, but that red and black dress she wore made her look fatter than I think she really is, in my opinion.
This has t be a problem with celebrities: the main reason, I hae observed, why women like to bring clothes home from expensive mall shops is that they can bring them home, wear them to a party, and return then afterwards. This is harder to do if the entire planet has seen a celeb wearing the clothes, though.