I don't go for it myself (since it would require thinking about what to wear and spending money on clothes that could otherwise be spent on bikes, cakes, and train tickets to take my bike to interesting places to meet other people and ride bikes with them) but I know a several of women who often wear the 3/4s and a short frock combo and it always strikes me as a nice balance between practicality for actually riding, and not looking like PE kit. Of course several of the women that I know who wear this combo would probably manage to look stylish wearing a bin bag...
My general cycle clothing choice is rolled up jeans and whatever t-shirt is clean and long enough to not ride up at the back for anything up to 40 or so miles, unless I'm expecting it to be very rainy. Anything over that I'm going to look dishevelled and scruffy at the end of (OK, more dishevelled and scruffier) so I might as well wear clothing that contains traces of lycra, look silly to start off with, but at least it dries quickly if you get rained on and the pockets are handy.
Minx-girl has some cycling skirts that I quite like in a 'I can imagine them looking good on someone not me' sense.