I think theater loved making Wesley squirm as much as you enjoyed watching him do it. And really? I think that is one of the healthiest things the Xander has done yet. As a slave, he would have been horribly punished for making someone else uncomfortable! And I think you're right about Cordelia; one outburst of praise about his new body, and Xander is suddenly left having to reassess his own low self-esteem. After all, Cordelia would never give a complement unless it was truly deserved. Heck, Cordelia often wouldn't give a complement even if it was deserved.