Do not let your adornment be merely outward--arranging the hair, wearing gold, or putting on fine apparel--rather let it be the hidden person of the heart, with the incorruptible beauty of a gentle and quiet spirit, which is very precious in the sight of God.
I have always taken this passage to say that our outward appearance should not be our only source of beauty, but rather that Christ in us should be what makes us attractive and appealing. That being said, I am not anti-makeup, etc. I am not at my usual gorgeousness first thing in the morning!
However, I do know godly women who wear no makeup, always wear skirts, and don't let their hair down, all as part of their being "set apart" for the Lord.
The sad reality is that the church looks so much like the world in so many ways, that I do understand the desire to have some outward physical show of the inward sanctification. The flip side is, as Hudson Taylor discovered in China, it can be very difficult to minister to unbelievers if they are distracted by our differences, so why not dress as the general public does (within modest reason, of course).
I am curious to hear what you all think. I know I have a lot of "lurkers" because you send me private emails. Jump in with your comments!