I'm so glad I saw this thread in the little margin of the main forum (I always forget about this board), because I loved reading everyone's thoughts!
I associate curating with museums and art galleries, in which objects can be depicted in various ways to highlight different themes or relationships, and in which the space itself is a major compenent. In the sense of applying it to clothing, in my mind it would involve the careful, deliberate creation of a collection, both by bringing in new things and removing old ones. It definitely doesn't imply to me that the clothes are there to look at rather than be worn though!
Like Runcarla, I like how the word feels, because it reflects how clothes can be both practical and useful, how they're physical objects (textiles) but carry so many associations and histories to them as well. It reminds me of the William Morris quote, and it also feels like a caring word to me. Curators pay attention to details and physically care for the objects as well, keeping them in as good condition for as long as possible. It can also turn into fun extended metaphor: your closet rods & drawers & shelves are your space, your essentials (in Angie's meaning) would be the permanent collections, seasonal swaps would be the rotating collections, and the trends/new-to-you styles would be travelling exhibits. Or if you wanted to reflect on it as an individual outfit, your body would become the space, which your clothes must be arranged on in a way that displays some kind of relationship.
I suppose inherent in my feel for a curated wardrobe then is the idea that it's being used. I don't see the word curating as an excuse to buy clothes that won't be worn! I haven't actually run across the word on many blogs, but the style blogs I follow tend to be smaller and quirkier. I have seen it on a couple of 'minimalist' style blogs. I can see how people coming from a museum or academic background, who actually work as curators, would resist the way the word is now being used.