Dude - relax! Becoming a parent is a real emotional roller-coaster, and it's hard to keep your perspective, especially with your first, but remember - all kinds of morons have kids, and they're fine. Perfect is the enemy of good in this part of your life too
(my kids, and all my friends' and family's kids, wear and have worn hand-me-downs almost exclusively, except for fancy or special-occasion clothes)