Ah, but it's all part of Cuddy's character!
She's inherently flawed-- professionally, she's one of the few female deans of medicine-- a feat in a "man's field." Even though Cuddy is clearly intelligent (we infer this from day 1 by her title/position within the hospital, and the fact that no one but House seems to give her flack,) she is emotionally stunted (take a look at how she initially responds to having a baby in her care), and lacks self-confidence.
Because of this, she finds herself in a weird predicament, where she expresses this awkwardness through inappropriate clothing that's overly sexual and, well, tight. It also serves as an interesting juxtaposition of the (masculine) hospital and her (feminine) role.
Cameron and 13 are definitely toned down versions of her, but as we can see in a few eps, they also have a wild side and opt for workwear that is more masculine instead of the tight skirts and blouses that Cuddy goes for.
House: crass as Cuddy: overly sexed -- together, they're a perfect, flawed pair.

Clearly I've given this too much thought.