It depends on just how skillful you are in maneuvering in the short skirt. If flashing a little bit of this and a little bit of that is your intent, then it's fine. If it's to be class and attractive, then unless you have amazing skills, it's probably shorter than is advisable. That said, I really like it.
I think it might be too short - Sitting down may be a problem for you. Last question unless you are an exhibitionist all girls would be not happy if this happened and I reckon there are very few exhibitionists out there.
I really don't understand your very last question. Would they want to do what? If you're asking if we would want to see your panties only someone who wants you for sex is going to say yes, but I highly doubt most people on the street are going to want to see something like that. The dress really is short, it honestly looks like a long shirt or as if you bought this from the children's section. Wear tights underneath, heck you could even wear jeans. This alone is just really inappropriate.
Girl, you've got guts, I'll say that. You're a lot braver than me, for sure. It's cute, but definitely needs a few more inches of hemline unless you plan on going to a function and having to stand in one place, never move, never sit, etc. or you'll be the star of the show.
Well it's short alright... but I can't even lie it's hot as he'll. I suppose it depends on the occasion, you probably wouldn't wanna be caught dead in something like that if you were perhaps say, going to a family reunion