Thank you all for your wise and thoughtful responses.
I think what bothers me is that the sheer volume (not to mention cost) of my smart casual clothes exceeds my opportunities to wear them.
On the other hand, I *could* wear some of my smart casual clothes casually. So I am going to try and migrate one capsule into the other. That was another a-ha from doing this analysis.
I love the LOA aspect of this discussion. Being sensible and analytical, I never believed in LOA. However, owning a restaurant has totally changed my mind about LOA. It is real! When the restaurant is full, it gets busier. The business attracts more business. When it is empty, we see people pull into the parking lot, pause, and pull back out. The negative energy is attracting more negativity. Even though, if truth be told, the food and service will be excellent when we aren't busy. We have time to fuss over you then.
Rae -- it's both the volume of clothing and the cost skewing the smart casual percentage.
Caro -- I'm thinking exactly along your lines! For my smart casual capsule, be ultra picky. I am eyeing much higher end items for fall that are not discounted. But I didn't think much further than that other than to be picky and maybe buy fewer but better items for this capsule. Your suggestion to practice one in, one out, is a great one for this capsule. (Whereas when it comes to other capsules, not so important.)
When I first did this analysis, I included sleepwear. That is truly the most neglected category. Given that you wear something every night, doesn't it make sense to have some better items rather than demoted loungewear (which is my habit). The last time I purchased any sleepwear was over 2 years ago, and it was a couple of $29.99 pj sets from TJ Maxx.