James, there's a difference between dressing your daughter up like a hooker and allowing her to dress herself up like a hooker.
Personally, right now I feel like when my future daughter wants to start experimenting with her looks, I will be okay with it. Maybe I'll feel differently when/if I actually have kids . . . but I figure that as long as I take the time to educate my daughter about what these clothing/makeup choices mean and I feel like she understands that, I'll be fine with it.
After all, wearing a thong/low-cut top/lots of makeup doesn't mean you're having sex. Nor does it mean you're a bad person. But you have to take into account the fact that other people are going to treat you a certain way because of what you wear, which is a fact that I think girls of a certain age don't always fully grasp. As long as I think my daughter understands what impact her wardrobe choices have -- not just in terms of "sexualized" clothing, but also if she chooses to dress punk or goth or what have you -- I think I'd be okay with the choices she makes.