What a shame that people can be so rude. Denise, you look GREAT in outfit #1. Perfectly appropriate. Like others, I think that hostess must have been jealous or insecure about her own appearance. I wish ALL of us, whatever our body types, could feel comfortable in our own skin. I know that's a big part about what this site is about.
As a small-busted hourglass, I haven't had to face this kind of jealous nonsense, but I did have an awful time getting jeans to fit when I was younger, and internalized some shame about my figure as a result. I thought there must be something wrong with ME, not with the clothes.
I guess each body type may have to combat some people's ignorant assumptions. Large busted hourglasses battle the perception that they are "trying" to be bombshells or "showing off." Very slender rectangles probably get accused of "showing off" their figures, too, and have to listen to endless comments about how they can "wear anything." Inverted triangles may look "sportier" than they mean to in some outfits, or more commanding (depending on height). Petites are so CUTE, don't you know?? Adorable apples...gee, they are just so COMFY and MOTHERLY (I'm sure there are other attributions but those are two that jump to mind as ones that people might say...)
The "showing off" or "too sexy" perception is particularly difficult in the workplace, but it's fortunate that many people can pick more structured clothes in those situations....assuming they can find any to fit their lovely curves!
I really like Neva's point about cultural differences influencing people's perceptions and attitudes. That makes a whole lot of sense.