I agree with your complaint. I just ordered these from 6pm:
http://www.6pm.com/red-dot-jac.....ress-black

Same dress in white:
http://www.6pm.com/red-dot-jac.....ress-white

http://www.6pm.com/three-dots-.....ress-black

We'll see.

There seem to be a few options at Garnet Hill (I was looking at the catalog yesterday and just clicked through earlier link)
http://www.garnethill.com/star.....RRWidgetID
Ok I also just found a ton of options at Sierra Trading Post.
Worth looking at
http://www.sierratradingpost.c.....ses~d~257/

I went into Kohls a few weeks ago and came out with 3 dresses. All were capped sleeved or less, skimmed my body (I don't like anything touching me), and were very affordable and modest. They had a lot of modest-not-matronly styles to choose from if you aren't looking for investment pieces.

It was humid and hot as blazes yesterday, I'm swollen from medication and miserable, and I wore one of my dresses and felt like I was wearing my jammies. You just can't beat that.

Wow, this thread has legs! Seems like a lot of us are looking for the perfect summer sundress.

Thanks for all the links and tips, everyone. I'm definitely going to check them out. Good luck to all who are questing!

Definitely having the same issues here! This is more dressy, but it arrived it the mail yesterday and it is delightful, and silk to boot. I had hoped to wear it to a wedding in June, cocktail attire specified and I think it will be perfect. A nice midi length, although I'm sure it could be shortened easily if desired.

http://www.talbots.com/online/.....UnderSale=

oops... try this. I ordered in black BTW

http://www.talbots.com/online/.....e=cat70008

It's kind of a pain (perhaps less of one than spending hours online/IRL searching for the right dress?) but --

if you find a dress that's *almost* right, it's relatively inexpensive to have an alterations person add/widen straps or length. Adds could be tonal, contrasting, or printed -- and hey, colorblocking and pattern-mixing are in this year!

Found another possible contender (it's not a soft knit though)

In most sizes, it's only $64:

http://www.amazon.com/Nine-Wes.....38;sr=1-91

97% cotton, with a tiny bit of stretch fabric added (3% spandex)

Free shipping and returns as well. Not bad! Description says "cap sleeves" but I see sleeveless.