I'm with Maya on this - the thought of women sitting on the subway with naked tush squicks me out too. Mac, thanks for that link, I had a laugh. And Angie, you crack me up!!!
While I would NOT allow my teenage daughters to wear a dress like this, I am okay with them wearing minis provided they pass the bending/sitting test, which this one wouldn't.
Otherwise, I suspect I may be more permissive than most moms. My girls are generally modest to begin with, but the way I look at it, youth is squandered on the young... hee hee. When I was that age, I didn't have the confidence to wear certain clothing styles. Now I'm too old for them! I don't want my kids to get unwanted attention but I also don't want them missing out on enjoying their youth - including experimenting with certain styles - while they can. But it's a balancing act. There's a big difference between a tasteful display of youthful shoulder or leg, and a tacky one. So for example, if my DD wants to wear something short like this, I don't tell her "over my dead body." Instead, I point out that her underwear will show when she sits, and then steer her towards a mini that's more tasteful, and suggest that if she's showing her legs, she might consider covering up more on top. Etc.
Somewhat related note: at H&M this weekend I spotted some funky patterned leggings I thought DD16 would love (her birthday is coming up soon). Got in an argument with DH over it - he said something about what sort of mom would let her daughter wear that out of the house??? I tried to explain that they are an accessory - you wear them with a dress or tunic and boots. He asked would I wear them - and I said no, of course not, they're too wild. I would wear solid black ones though. However, the wild patterned funky tights are meant for the young. That's when we can get away with such styles! I did not buy them... now I'm wishing I had. DD would've known how to put them to appropriate use. Sigh.
Do you ever wonder if it's not just the hormones, but that our daughters are somehow deliberately soliciting unwanted attention so they can learn how to deal with it and gain confidence? For example, DD16 wears some pretty outlandish get-ups (not trashy - more like unusual; I can't even describe her style! Goth, punk, lots of rocker, boho, euro, artsy... all mixed into one) - she has since middle school. It's almost like she wants people to raise an eyebrow. It's given her thick skin and confidence in her individuality.