That's not really how many different looks there are. That's just how many item combinations. Switching out a single item doesn't really qualify as a completely different look IMO.
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Well if you change your chest or helmet you look completely different. Or arms kinda change and ur legs are not that noticeable. I just wanted to illustrate the amount of possible iterations there are even if most of them will never be used (I don't think there will be a guardian running around with one piece of every faction.) but I do notice that if there is a guardian in the tower that looks like me, I can quickly nitpick even the tiny things that are different. In the new update, it'll make it easier to spot them and to identify myself as an almost unique snowflake.
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Switch out an item and see if the avatar looks different. I think it will, so it's not really based on opinion...