Well I have the skirt portion done. It looks different from my original sketch, but I am happy with what I have and am thinking of different ways to finish off the neckline and armholes. I put in a k2tog row inbetween garter stitching to accentuate the waist of the dress and to have a place to put a pretty ribbon if I feel so inclined once I am done. My daughter is already ohhing and ahhing oer what she calls her "Tinkerbell dress" (which I feel is pretty appropriate since I did a lot of tinking as well as frogging).
I saw a neckline on a tank in Interweave that I liked. It was a simple casing with ribbon threaded through to make the straps and I liked it enough that I'm playing with the idea of using that as my neckline, but I have also thought of doing a simple scoop neck and then edging the armholes with the lace to make frilly little cap sleeves. I feel that may be a little too much frill, but I'm more drawn to uber simple designs.