This Indian analogy conforms with "focusing on selling experience rather than (solely utility of) item" imo and it's a very good example. It also creates diversity in monetization, my intention for such case in my game is using personal (Elvis entered the building style) and squad uniforms , may even consider special edition of common weapons (slightly better Special Colt or excessively more expensive golden plated one making no difference)
How about exchanging "slightly better" or "different looking but same gameplay stats" for "different look and different stats, but not better"?
I know this might lead to hard to solve balancing problems, and yes, sometimes a Hat is just a Hat, but a) as soon as a premium item is even "slightly better", the masses start complaining, and b) if its just about the different look, you loose out on some sales as some people are not that much motivated by looks, but more by the gameplay stats.
How about that:
bog standart colt: 6 shots, medium accuracy, medium damage, medium Rate of Fire
Billy the kids legendary 5 shooter: 5 Shots, medium accuray, medium damage, high RoF (well oiled, easier to re-cook, whatever the excuse is)
Buffalo Bills Magnum Colt: 5 Shots, low accuray, high damage, medium RoF (Assuming here that damage is more important than RoF when you need to reload the drum after 5 shots anyway)
General Custers long barreled Colt: 6 Shots, high accuray, medium damage, low RoF
And so on. You get legendary weapons that might radically influence gameplay, but with careful balancing will not be straight "better" than the standart colt.... maybe err on the safe side and make them slightly worse with everything taken into account, just so nobody can call it pay2win (some still will).
As long as the Weapon feels different enough gameplay wise, does work somehow, and maybe allows some advanced tactics that might not work with the standard weapon, you will find some people interested even for the gameplay stats of the weapon, while no free loader that knows the games rules and the different weapons can really complain about it.
After all, he was able to spot the shiny long barreled colt in his opponents hands, could have come to the conclusion that it would be a bad idea to take long distance pot shots against an oponnent with a vastly more accurate weapon, and could have worked his way into a closer distance to abuse his much higher RoF against the premium weapon wielding oponnent.
This way, the premium Item actually even enriches the gameplay for skilled free loaders that now have another potential obstacle to overcome... which might make the fight more interesting to them.
Of course, sometimes vanity items are just that, and it makes little sense to tack on ingame bonuses just to draw in additional sales. If it feels like an afterthought tacked unto a premium item just to heighten the perceived value, it will most probably feel cheap and lead to p2w claims.
As for the uniform: you could even make that more than a vanity item.
What happens when an officer (pre-WW1, even military guys learned that part in WW1 :) ) enters the stage clad in his shiny uniform, with all his golden rank insignias and medals? Instantly his troops are awe inspired as all the gold and sparkles leave no doubt about both his authority and his expierience in battle.... and instantly he will be prime target to enemy snipers (how could he miss something so shiny? :) ).
IDK how this could translate to ingame stats, but how about the uniform making the premium user giving nearby troops bonuses, maybe even grant himself some bonuses, but he will need to play more careful now as he is easier to spot (and that is a fact, there is a reason why "the gold" disappeared from active military non-parade uniforms in last few decades), and will be prime target to snipers. Maybe enemy troops that eliminate him get a bonus for that?
This way the uniform does not only makes the player look more sparkly, it instantly slightly transforms his role among his own troops, and the importance of him to the enemy also changes.