I don't think that last outfit is bad at all.

I suppose it'd be better with some color, but other than that, I think she's working it.
And one other thing I will say is that, I don't care what anyone say I just love what Katie's been doing. No I don't love everything she wears. In fact, some things I straight out hate (I'm thinking those rolled up man's jeans in particular), but you can't blame the girl for trying. For someone with such high profile, it'd be so easy for her to just go the safe route like 99% of the celebrities out there, with all the cliche 'in' choices. But no, she instead goes with something out there, out of the box and original. Again, it doesn't always work, but overall it's so refereshing. I don't even care whether it's her or her stylist that's responsible for this, in the end she's the one walking out the door in whatever she's wearing and despite people saying she doesn't feel comfortable in those clothes or whatnot, I think she looks fierce.
Her style has completely transformed since she hooked up with Tom and there's always cry from people that she should go back to "her" style. But lets be honest, it wasn't much of a style and nobody gave a damn about her back then anyway. Now, undoubtely being married to Tom Cruise helps as far as her public profile goes, but I feel like she's become more than Tom Cruise's wife and partly it's because of her style. Love it or hate it, people care about what she's wearing. And even amid some strong criticizm about some of her choices, she doesn't seem to care, she just keeps doing her thing.
I'd think of anybody, people on a fashion forum would commend her for that, but alas, it isn't so. Regardless, I think if she continues what she's been doing so far, few years from now she'll be one of the biggest style icons in Hollywood. She's on her way.
Just my $.02.