Lime - Yeah, I'm afraid the basic physics of it are such that there's just more fabric in the hem than there is where you need to attach it. You wouldn't need to gather it in very much... running it through your machine with a longer stitch and slightly higher tension would almost be enough... but to be able to turn any fabric under, it does need to come in somehow.
I'm pretty sure that two inch hem in the reference is only achievable by attaching some kind of facing, like one would for scalloped edges, but that may add a bit of extra bulk. Could possibly be a cleaner solution, though.
If you have a serger, you're in better shape. A narrow hem may work, though they tend to work better for more delicate layers, and it's difficult to keep them from coming out wavy when they're done on curved lines (if the fabric stretches at all). Otherwise you can serge the bottom edge and just turn that portion under. Iron everything before and after sewing, tack it by hand if you can, and it should turn out pretty clean. I have a circle skirt where that worked out okay. If nothing else, the stripe of pink embroidery (or trim or whatever you're using) should cover up any leftover wonkiness.
There are definitely still ways of finishing it cleanly, and I'd suggest going that route, since skirt hems tend to take a bit of a beating.
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