I like her.
Great job on resisting the urge to catch the gun. I think that initial reaction is a reflex in all of us.
I think you are on the right track with the smaller pistol.
G26 is , IMHO too heavy for that type of unsupported carry in a holster.
Maybe a .380 Kel Tec or Ruger.
Glad to hear you ditched the POS nylon holster. It amazes me how many people will trust a cheap, one-size-fits-none, piece of crap clip holster to secure their $500 weapon.
I wonder if you might be able to find a garter style holster. Do you watch 'Sons of Guns'? The girl on that show was trying to produce and market just such a holster. I bet you could find one somewhere on the magic internet. If not, get creative with a holster you like, some webbing, velcro, snaps, whatever, and heavy duty needle and thread. make your own that rides at the top of the inside thigh. Secure it with some sort of lady-wear under belt thingy...
Fitting something to the thigh to hold a gun would probably require more than just a band around the thigh. It would need a garter type of support. The cone shaped thigh and constant thigh muscle contractions will eventually work an unsupported small firearm down the extremity. I just could not even begin to imagine that would hold something over about 18 or 20 ounces anyway.
Your wife rocks! Have her go to The Well Armed Woman and check out their holster videos. They have several options for women, designed for women to comfortably carry, and have everything from ankle to bra carry. Really nice folks, too. I got my ear protection there and my lovely "I shoot like a girl" baseball cap (with a nice grouping in a bullseye for a graphic.) Site is completely dedicated to shooting gear and info for women. Love it. NFI, etc.
Hope this helps!