I clean out my wardrobe a couple times a year and give what doesn't fit me anymore either to my younger cousins or to the daughters of my mom's friends. Some stuff gets thrown out because I simply wore it to death and it's in bad condition.
I'm reeeeeally bad about buying nicer clothes/dresses and then never wearing them or only wearing them once. I'll see it in the store, love it, have to buy it, then never go anywhere nice enough to bother wearing it lol. One day I'll realize that jean shorts and flip flops, or skinny jeans and converse are better investments than that pretty ruffle-y dress.
Anyway, I define "too many" clothes as when I don't have room for them all... and I have a huge closet that takes up the length of one wall and a large dresser lol!