The peasant blouse has come in and out of style since the 70's.  And now with the massive flux of festival fare they are here to stay.  I do think this style is tricky especially since I always like to wear clothes that flatter not fatter!  At an early age I learned that there is a rule to volume.  Just ask my college roomie Mer!  Unless you are supermodel thin, I don't think its flattering to wear volume on volume - aka flowy tops and flowy bottoms.  Its one or the other ladies.   Otherwise be prepared to look larger in those Instagrams!  Since I am petite and curvy, I've got to be careful with volume - it can overwhelm my frame and make me look preggars.  I chose to wear this cute peasant blouse (circa Target 2009) with some GAP white washed skinny jeans, striped espadrilles (similar style here) and vintage turquoise earrings (similar style here).  This maintains the right proportions for my shape.  

I do not believe in trendy fashion, just classic styles that have staying power.  Peasant blouses still have their place amongst wardrobe classics.  Check out some of these similar styles below (click on the pics for direct links).