My GF has a friend who just had a kid. The friend didnt ask for any clothes in her baby shower. She craigslisted and bought all the baby clothes second hand. Her reasoning is that kids in the first few years grow up so fast that its stupid to buy new clothing when you have to get rid of them a few months later. The only clothing she bought new for the baby was for an occasion like pictures or for when family visits on a holiday.
Yea 2nd hand stuff is great. The best thing is most of it is barely used because kids outgrow it so fast. Best place around here is Once Upon a Child. We went in a few months ago when they had some sale, and got like 12 outfits for our daughter and 10 onesies for $30 total. A few of the things still had the tags on it. We do buy new stuff if its something so cute we can't resist, but most stuff we get from there.