I have a problem with her half nude pics being in on the front of a magazine that will most likely be at the cash register of Wal*Fart or a grocery store for kids to see while you are waiting in line for 20 minutes. My niece idolizes this little girl. She's 7.
My daughter is 8 and this point bothers me also. Personally I just haven't talked about it around her, if it's on the news I change the channel, move the magazine, whatever. If she asks or sees it then we'll address it.
I think this is being blown way out of proportion, you have a 16yr old that is trying to make it in a grown up world on the verge or being a grown up herself. It's bound to happen. I think she's sincere when she says she's sorry. There are many things I am not proud of in my past and to be perfectly honest some are worse than these photos. To me this is the upscale version of a 16yr old getting glam shots at the mall. I'm sure she was made to feel it was the right decision. Shame on Vanity Fair for using the shots just to get their sales.
As for what I tell my daughter, it will probably be something along the lines of people make mistakes and I bet she wishes she didn't do that. It's not appropriate ever to do that. Followed by, "what do you think her parent's said?" just to see her line of thinking.