I agree, shorts can be tricky for those of us who are hip-endowed. I like the length of the ones you're wearing, Tracey.
My current favorite lengths are shown in my Finds, below. Either halfway down the thigh, or just below the knee. I wore those Gap shorts yesterday and loved them.
I find that there are a few factors that go into finding the sweet spot for length -- and width -- of shorts. Leg length, leg shape, and even the overall body proportions. For me the fact that any fat on my body seems to stay firmly attached to the outside of my thighs, and the fact that I have a very proportionally short torso can really throw off my proportions when I'm wearing something as simple as a tee and shorts. I have shorts with inseams varying from 5" to clamdigger (below knee) length, and I think most of those work pretty well on me, despite my not-conventionally-fab legs. But inseams don't tell the whole story -- 5" is pretty short on me, while it would be halfway down the thigh on some of our shorter ladies.
Aw heck, by the time we get to this part of summer, when it's warming up so much, I start to not care so much, and I wear shorts enough that I actually start to like my legs. Considering that at the beginning of each summer, I feel a little panic at the idea of shorts, that's quite a shift.