I've got a pair of padded underwear and one jersey (with Curious George on it, purchased at TE). Most of the time I wear ordinary shorts and a t-shirt for bicycling. I have lost about 50 pounds recently, but don't feel like I want to "accentuate the positive" as my mom used to say, by wearing skin-tight clothes. I've had rude teenagers shout insults at me, even without bike clothes. And I figure if I ride without padding on my ordinary rides, I'm prepping the parts of my body that contact the seat for a longer ride when I do put on the padded stuff.
Where I live (Central Illinois) I see a lot of women biking, not as many as men, but a lot, and the only ones in lycra are going really fast, and they're skinny. I don't know if it's because someone is missing the market, or because lycra pants and close-fitting jerseys put most of us in fear of looking ridiculous. There isn't any place in town where I can actually try on the lycra pants and see how bad they look before I buy them. That's got to be a factor. And if you buy online and it doesn't fit, you're out the postage both ways.