I mean, I'm normally pretty open-minded about products like this, but I'm having trouble seeing the target market here. Are there really a significant number of people out there who want to be able to browse their wardrobe on their phones and get a computer to help them choose their outfit? (I honestly don't know; fashion doesn't really interest me so I'm clearly outside their target market.)
I wonder if Amazon's real motivation for this product may actually be to create a better way to sell clothes online. Maybe once they get enough data points they can start using AR to show you how you'd look wearing a particular outfit or piece of clothing sold on amazon.com? Or maybe it will take your measurements to help ensure the clothes you're ordering will fit you properly. If so that might actually be useful; and would probably significantly increase online sales of clothing.