(This question comes from a prior post of mine entitled Sorry, But I Can't Stop Asking Questions.)
Modesty has become a dirty word because the church in general in this country has adopted cultural norms for almost everything. This includes dress. Additionally, we live in a culture that tells everyone, especially young people, to do whatever they want whenever they want. This is the most "me-first", individualistic culture in the history of the world. To challenge this line of thinking is to be labeled a bigot.
Another problem related to modesty is that it is often portrayed as a stereotype of what it is. Those who want to wear whatever, whenever often talk as if modest dress is the same thing as wearing a burka. This is absurd, but I've had people use this "argument" with me. When I've dared to suggest that Christian women should not wear bikinis, I have had people say to me, "What? Do you expect them to wear burkas?" I'm not joking.
Please let me be clear: modesty extends to more than dress, and it applies to both men and women. Modesty ought to impact, for example, the way we speak and the way we eat. Any aspect of our lives that is out of control is problematic.
What I've talked about so far in this post are actually symptoms. The most important thing is having a heart for God. Part of that is placing our own desires below His. We hope, over time, that our desires will in fact come in line with His. Those in the church who don't really care what God thinks have bigger problems than simply not wearing enough clothing.
In the end we must all ask ourselves whether or not we are willing to sacrifice our own desires for the betterment of others. In our me-first culture this is not a popular thing. In the largely me-first church this is also not a popular thing. However, if we are willing to seek God's desires and look out for the good of our brothers and sisters in Christ, then we will live modest lifestyles. While this certainly includes how we dress, it extends to much more than that.
Let's be modest in all areas of life. One exception: let's be liberal in how much we love God and our neighbors.