I feel similarly, that clothes for cuteness purposes are demeaning and just not nice. I do get clothes for practical purposes though. Doggie coats for winter walkies just makes sense. I would feel terrible if my dog got sick or started shivering because its core temperature dropped too much during a walk.
In a similar vein, I knitted my cat a little sweater to wear when she sits in the windows in the winter time. Is it cute? Oh my goodness, yes. But its there so that she can sit in the window and watch the birds without having to rub against the radiator every ten minutes or so to warm up. She's not hugely fond of it, but on really cold days, she brings it out for me to put it on her
I don't force her to wear it if she doesn't want to, though. I also made sure that it would be easy for her to take it off herself, which she usually does immediately after window time.
On the other hand, I have heard stories about animals that actually like their clothes. My mom's old boss had a dog that would bring out the outfits she wanted to wear pretty regularly. I suppose if the animal genuinely enjoys it, its okay.
However, most animals don't like it, and the clothes are there only to satisfy the human urge to anthropomorphize everything. And that, I can't get behind.