I'm Buddhist and I don't mind. I imagine Buddha would be flattered. That's just me though.
But there are all kinds of ways that "Buddhists" think of "Buddhism" and I would anticipate that many of them would be quite insulted.
I wouldn't wear such clothing in Southeast Asia for the same reason I wouldn't wear Mohammed shirts in the Middle East -- I'm not out to insult people based on the things they believe most strongly in for the sake of fashion.
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