Wow! this thread has so many opinions, its scary! I read almost all the posts and decided to add my own thoughts:
1) we cannot judge previous generations! what is an issue now with tznius is affected by and is a result of influences from today!
2) a woman is required to cover certain parts of her body. it is not always easy, but there is a very large variety of clothing and alot of stores with different price ranges that sell tznius clothing.
3) dress how you want for your husband, dont dres that way in public for others to be attracted to you. This reminds me of a story my kallah teacher once told me.
A couple went to E”Y on vacation and the wife realized when she landed that she didnt have a head for her shaitel. Not knowing what to do, she started to knock on neighbors doors. A rebbitzen answered at her first stop. Dressed in a turban with a shpitzel and ultra tznius clothing and being a chashuva woman, the wife started to stammer about knocking on the wrong door and was about to turn away when the woman asked her if she could help her in any way. Stammering and blushing, she told her what she needed and asked if she knew someone who had an extra shaitel head. The woman invited her in and to teh wifes surprise, handed her the head. The wife was so surprised and the woman said, i wear my beautiful clothing for my husband, not for public.
I dont know how to tell this story as my kallah teacher did, but you get the point.