If she's dressing more sexy than skanky, I say be proud. I consider my outfit a success when women turn green with envy and their husband pant.

I dress to please my husband and myself, but if others think I'm hot, then great.
OP, be proud of your wife. Don't let the criticism of others color your view of her. Are YOU happy with what she's wearing? Would you feel uncomfortable if others weren't judging her? If so, you need to examine why the approval of others matters more than your wife's happiness.