Independence - how much is too much?

Mini is allowed about as much independence as a two year old can be trusted with.  She is allowed to play in the garden by herself, use the potty (sometimes successfully), feed herself, choose her own clothes and get herself dressed, where possible.

I am happy with her progress in these activities and more concerned that she tries to do things for herself even if she doesn't always get it right.  However, I do have to be seen with this child.  It is this fact that is making me wonder if she perhaps has a little too much freedom.  I say this because she came downstairs dressed like this today:

I am tempted to strip her completely and do a better job myself...what do you think?