To my eyes, it looks how a pencil skirt is supposed to look. On curvy women, pencil skirts emphasize curves, while on straight women, they create curves.
I have 2 pencil skirts. One of them is more clingy like yours, and the other is straighter and has more weight so it doesn't cling as much. Both of these skirts are fabrics other than denim. The one that clings has a lot of stretch while the one that hangs straight is a non-stretchy tweed. Perhaps a straighter, non-denim pencil skirt would work better. Or even a straighter pencil skirt in denim but not as stretchy.
To me this skirt looks pretty straight though, and doesn't taper that much (there are skirts out there that will really hug your knees and make it impossible to walk!). I don't find it distasteful or unflattering but if it makes you uncomfortable I would definitely keep looking.
