So I would totally be all over buying merch. I actually have experience have custom T-shirts and other apparel made for groups I was in -- it's not that hard and it isn't prohibitively expensive. Without doing any research whatsoever, I know that cafepress would be something that fits this very well, but it's been several years since I've heard or done anything with them.
Given that we're from all over the world, an online solution seems best here. You can just order what you want and have it shipped to you, and it costs you $20-$25 for a T-shirt. Expensive, but probably worth it.
Realistically, as much as I would wear the crap out of a shirt that says only YMYOSL in big letters on it, I think I might be the only person out there who would, so I'd do that one locally. If you want to prove me wrong, then someone just reply saying they'd wear a YMYOSL shirt and then people can just upvote that.
If this takes off, then sure, more niche and specific shirts could come into existence, but I think the best idea for right now is to make a generic F.DS shirt or maybe even a generic Dominion shirt. Something that would get the most people to wear it, since that ends up bringing down the cost. If that works, then it's probably worth talking about other stuff.
I'd wear a shirt with text on it more than one with pictures. There are 200+ card images and we all like different ones, so I would caution against using any picture other than the Dominion logo to start out. I suppose the closest thing I associate F.DS with in terms of pictures is the Gold-art avatar. I'd wear a shirt with that and F.DS on it, sure. I'd say the simpler the design, the more likely it is to stick.
I'm awful at visual arts, though (it's all performing arts for me) so unfortunately I won't have much to contribute in terms of designs -- I've always had someone else help me with that part of things. I'm sure people will suggest more designs here.
Legal issues? My knowledge of this is at least 8 years old but I think we're probably OK putting the Dominion logo on a shirt as long as we put the right symbols next to it and get permission from RGG. I have a rapport with Jay from RGG from the IRL tournament I put together, I would be quite surprised if he didn't give us permission for this, we're basically offering to be billboards for one of his best-selling products. If that becomes necessary I can start that conversation if nobody else has. I'm pretty sure we can put the Gold art and "F.DS" on a shirt with no problems.
If there's more interest I'm willing to do a little more research. This isn't impossible to do and I'm pretty serious about wanting it.