I love this sort of look in general. Like a lot of fashion, you're paying extra to get something that looks exactly like the cool effect you wish you could find naturally. Ripped jeans are the classic example; or vintage re-creations; or just the right amount of oversized like you stole your boyfriend's shirt. That said, I had exactly the same negative reaction to the "moth-eaten" cashmere sweater I saw at Bloomingdale's this weekend. I think it's because cashmere is such a luxury thing and we always talk about finding the best cashmere with long fibers that'll last forever and not pill or rip.
https://www.bloomingdales.com/.....hirt?ID=30
And, to be honest, it has to be done really well for the 'fake' version to be worth it. Maybe that's part of my complaint about the Bloomingdale's sweater, or some paint-splattered Levi's I saw recently. The $695 R13 ripped cashmere sweater (Find below) is absurdly more than I'd ever spend, but I have to admit that R13's styling just totally nails that grunge look, and its success comes from careful and subtle detail.
I found an interesting guide on how to distress your own jeans. Lots of work involved -- cheese graters were one option, and also, cutting two horizontal lines with a razor then pulling out all the vertical threads in between. It's funny -- I would be ok with buying pre-distressed jeans, but I balked at buying new jeans and destroying them myself -- even though the total price would have been cheaper.