My wife's right next to me, is reading the thread with me, is an avid SF player since Third Strike, so I fail to see what's out of context. She has her opinion on what constitutes tasteful sexuality and this ain't it.
That R. Mika is a take on Joshi pro wrestling and her butt slap is akin to a wrestler signalling to the crowd for her finisher move. Is it cheesecake? Sure. Distasteful? If that is distasteful, your wife probably finds a shit ton of things distasteful about SF in general. Especially since 3S. I personally didn't even find it sexual at all. Campy? Cheesecake? Sure.
Guess Capcom made the choice for us though. Does she find the outfits in this game distasteful sexually as well?