I did a little experimentation with Photoshop on the female characters and then played with the different screen resolutions on different monitors.
I discovered something interesting that I hope is not the way the game will be. It seems that the game screen stretches or compresses depending on the chosen game resolution. This is one reason we are seeing distorted female characters, though the hips are still a little big. The screen stretching emphasizes this, where it is not as evident in the male characters.
Below is in game screen shots at different resolution widths, all 768 pixels tall.
So I have a question, is this intended, or will screen width setting eventually make a difference in the image real estate we see in game?
Oh, and the arms are still too thin in each resolution.