The title of this thread is "what do you think...." I took this to mean that the OP wanted opinions.

Obviously we have a range of those here.
Please don't call me judgmental then go ahead and "judge" my opinion. I have every right to feel the way I do -- the same as you. I think that skimpy clothes are inappropriate for any age. Just because so many 16-17 year old girls dress that way doesn't make it right or okay.
I will disagree with you as to what age group HM marketed to. The powers that be wanted little girls to follow her as fans. Otherwise, there would not have been merchandise in those sizes and for those ages. (dress up wigs/costumes, toys, clothes, etc.)
I am sorry that my opinion was confusing.

I believe that our young girls are being highly sexualized by the media. I am doing my best to raise a daughter who dresses and acts modestly and that includes not allowing bikinis or dancing with an ice cream cart pole. At this age, yes, I do "ban" things. And she can learn from things being banned. But if and when she asks why, we will have a discussion about my reasons. Hopefully, by the time she is able to make these decisions for herself, she will do the right thing and continue to dress and act modestly.
Whether or not you (in general) agree with my position, there are people out there who do. Many employers and even colleges have been checking peoples' MySpace and Facebook prior to hire/promotion/admission. Based up on pictures (that may show provocative dress or actions) and posts, young people are being denied that hire/promotion/admission. Appearances do matter and I don't think dressing in skimpy clothes and dancing inappropriately make for a good impression.
I think Miley has been a good girl and I hope she continues! I worry about child stars and the awful track record so many have for disaster! I do not want to tear her down. But I am a mom first and she is quickly going down a path that I do not think is appropriate for my daughter to view or want to mimic. As such, the older "Miley" is greatly censored at our home.