Less closet space being wasted. It's nearly 2AM, so I'm not as coherent as I'd normally be. Though if you have an overly packed closet, it could result in some garments needing to be ironed more from being crammed together all the time.
I think it's a bad example. More clothes mean you will do laundry less often but have bigger loads when you eventually do, while having fewer clothes means doing laundry more often.