I think it depends on the animal. Some seem to enjoy it, others tolerate it, and others can't stand it. Dogs seem to take it best, probably because they are so social and like attention. I used to dress my cat in doll clothes and put him in a bassinet when I was a child. He tolerated it and was a very easy going cat.
I see some of you talking about them getting overheated but some dogs are so small or are shaved so I think a sweater could be a good idea, especially in cold weather.
If you want to see a cute dog in clothes check out Boo on Youtube, Facebook, his own site, or even his own BOOK! haha. He is so darling.