Not that I support pointlessly skimpy armor or anything, but I've heard a few people saying that if many of the armor sets in TESO were like this, it'd just be another example of the game being watered down, the lore mutilated, and the game just overall being made to cate to the mainstream instead of "hardcoe fans". So I just thought I'd point out that...

http://images.wikia.com/elderscrolls/images/f/f1/Arena_cover_art.jpg

http://www.uesp.net/wiki/File:Df_human_thief_f.gif

http://www.uesp.net/wiki/File:DaggerfallVampire.gif

http://www.zeldadungeon.net/wp-content/uploads/2012/09/Daggerfall.png

Pointlessly revealing armor is pretty darn lore-friendly. :/ I mean, yeah, it was used signifigantly less in the past 3 games. But it's still plenty there in the universe...

I think it depends. For example in Skyrim it would be pretty stupid for the general person to dress less, but in Hammerfell, Elsweyr or Argonia I would understand. If the player armours feature the less approach I would be surprised because America fantasy doesn't usually go towards that style.

I think the Elder Scrolls has been pretty good about this actually, ever since Morrowind. Perhaps a couple of revealing pieces, but nothing much.

In fact, the only thing I was dissatisfied with was the female vampire armor in Skyrim. Such a beautiful, fitting light armor set, but I don't care for the cleavage window, as fitting as it might be for an upper-class vampire who tends to not need much armor in the first place.