Oh, yeah, I use the term "CHAOS" all the time!
Actually, donating does do some good. The thrift stores provide jobs for a lot of people, and decent clothing for a lot of poor people. They don't make huge money off each item, but they also have other places that they ship clothing not suitable for sale in the stores. And it keeps the stuff out of landfills for a while.
If I had a little more time, I would have taken more of the work-worthy clothes to a place like "Dress for Success" which provides clothing for women re-entering the workforce. As it is, I think I donated a lot of stuff somebody can put to good use.