Yeah, the outfit is revealing but not in poor taste. And she certainly pulls it off well (I say this as a straight woman, too).
Interestingly, one of the few Southwest flights I ever took was faced with this issue. IIRC, it was Chicago to San Diego, and the woman in question was wearing a very, very small tube top and a very short skirt. The distance between the bottom of the tube top and the top of her skirt was quite enormous, and her entire (not small) stomach was hanging out.

It was definitely inappropriate and I could see why the SWA agents said something to her (I'm assuming a passenger complained, too).
She put up enough of a scene about not deplaning, and so they finally compromised by having her wrap a blanket around her midriff. So compared to her, the woman in the article is positively conservatively dressed and I think the agent was over the line!