Seriously, you're making excuses here to justify your employee's actions? The lawyer on the Today show nailed it - in the absence of a published dress code, general decency rules apply. Was the girl's outfit provocative? Certainly (this, coming from a guy in his 20s). As a frequent flyer (although never on SW, fortunately - I like my 36" pitch in E+ on UA), I've seen outfits like this more than a few times.
I have a general issue with flight attendants who think that their word is law - I've seen power-tripping FAs on UA and AA, but this is certainly one of the more ridiculous ones. Your flight attendants have NO PLACE imposing their personal morality on passengers, unless you have plans to modify your Contract of Carriage. You've blown your chance to get an apology, and now you'll at the least probably have to fork over some $$$ for a settlement. Hopefully you'll dock it from this Keith's paycheck.
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