I understand that while small kids or baby then there is lot of laundry. But I've heard some people wash same fav clothes every day just to be able to use them fresh clean every day.

Gosh, but there are other ways to solve that issue like having bit more of fav clothes, so that you dont' have to wash same cloth every day but instead was a bunch of them end of week. Need white shirt every day at work, buy at least 10 of them, use one each day, wash & iron weekend, put on pile1 and use from pile2 next week rotating for even use and to have some redundancy, then pile1 week and so on. Get more trousers etc. whatever you need. This is what I did when had job where dress code told what to wear in office.

And kids, buy them more fav clothes too if it otherwise becomes fight what they want to wear daily.

But each to their own. Above is just my view and how I learned when I was kid looking my parents, and how I've done also.