Hah yeah, I'd forgotten about that little quirk. Skirts also pose a problem when a female character sits in her Captain's chair in a very unlady-like manner exposing herself to her BOs and the viewscreen. They definitely need to implement the good ol' leg cross.
Yea I had the same thought with one of my characters. She was definitely not selfconscious at all!
The rank thing is a larger issue btw and doesn't affect all races. Some of my BO's have the rank drop down and others don't.