Conan wore a multitude of outfits if you have read most of the short stories, from pure black plate mail in the latter parts of "Hour of the Dragon", to next to nothing in "Red Nails", to pirate outfits, to just rags, to chain mail, nothing was linear and to every story he was armored/clothed in pretty much how the culture of setting was based.
Many of the stories are set in the Black Kingdoms, yet you see so little of that actual make it's way to the game outside a few combat abilities and armor that the Dark Templar class has named after it, such as Malacador and Gorugula and Alkeemon (SP).
The point is that your right, Funcom has largely ignored many of the better stories available and went for their own take based on just of a few random short works. Khitai, for example, was largely set up to compete with Aion and other cookie cutter Korean MMOS which were flooding the market at that time and basically usher in the changes that most of us veteran players hate: GRINDING.
The only thing I do like is that they incorporated H.P. Lovecraft's Chtulu (SP) stories which were always implied in many of Howard's works but always on the edge of understanding what it was all about.