Rags aren't useless, they lower the damage you'd get from plasma, chem, and choking attacks, 80%, 80% and 300% respectively, and give a decent bonus to voodoo, they are a lot of cloth, even if it doesn't cover quite well enough, so they are weaker to incendiary and special attacks though. As far as clothing goes, they're scraping the barrel, but they do have their uses.
On guns, the game used to start us a fair bit higher on the tech tree, now we have to figure everything out from scratch. A musket does very good damage for when you get it, but 3 shots per load is not great, a rusty niner gives 300% more bullets per load for only a minor cut in damage, at a time when weight and item slots are extremely critical. The holdout pistol is mostly useless, and probably vendor trash, but if you've got an extra slot or two and a chance of running out of ammo, it can kill a low armored pureblood without too much trouble, even, I suspect, on the hardest difficulty. Having a gun that you can literally put anywhere is useful.
On another note, does the aircar provide a lot of light?