Kind of a no-win here. The Superman outfit looks goofy if worn in real life, but if they changed it the diehard fans would be flipping out. It looks ok, although I think the S should be bigger. In the end, it's still a guy who wears red panties over his tights.
After reading through the Death & Return of Superman comics recently, I keep thinking the costume of the Eradicator would have worked quite well here. If they jazzed up Batman's uniform in the movies, why not Supermans?
I think it's part the writer strike, but more than they were led to believe they would be back in bigger roles by this point. The show is due for another status quo change by the end of the season, or that's gotta be it.