Israel is facing a decision that every country must face but in its own unique way. In all countries religious lobbyists play a hefty role in determining what is and isnt law, but in Israel these lobbyists have been afforded a vote, a unique shift in paradigm that many deem appropriate due to Israel's rich religious heritage. The negative implications of this is that outside of Israel very little of the remaining Jewish population shares the Shas party's views. The Reform movement is growing as are the Conservative and Reconstruction movement at a rate that demands respect. The question that needs to be answered here is whether the wall belongs to the Jewish people or whether it belongs to Israel. If it belongs to the Jewish people than it seems within these women's rights to practice as they see fit. If it belongs to Israel than it is within the government's rights to enforce the dress and behavior codes at the wall.
Hamas says Egyptian mediation has restored calm along Israel, Gaza border (Haaretz)
from the article: Police arrest woman for wearing prayer shawl at Western Wall