I fixed it!

Thanks again for the encouraging comments on my ruffled top. I doubt I would have found the motivation to fix it if it wasn't for people urging me not to give up. I probably would have just thrown it in the bin. Boy am I glad now that I didn't. And the solution was incredibly simple in the end. I was inspired by kbenco's fabulous smocked solution to a bwof dress and here is the result:

Here's a close up:

And the back:

I might actually wear it now!

Since I've never smocked before I kept it simple. I ruled four lines in the appropriate place 1cm apart and used the stripes as a guide for gathering. Then I worked two rows of honeycomb stitch, following the instructions in my trusty Reader's Digest New Complete Guide to Sewing (aka my bible). I made a long tie belt, anchored it to the back of the pleats (on the inside) with a few hand stitches then passed the belt to the outside through buttonholes on either side of the smocked panel that are concealed by the ruffle. Here's a blurry close up of the smocking:

I didn't finish my Melbourne Cup dress yet, but it was so wintery last week I wouldn't have been able to wear it anyway. But here is my finished hat - sorry for the mug shot! Sadly I didn't win the competition - the popular vote went to the novelty hats - but I had fun anyway.