Nudity is not of itself demeaning. It can show purity of form or self. There is also male nudity in this. But I agree it was largely pointless and gratuitous as done.
The newest translations have much better scholarship of Old English. The OE Dictionary has been changed significantly in just the last couple of years.
Actually, the Old English descriptors of Grendels Mother are "Noble lady" and "supernatural warrior." That last is the same phrase used for Beowulf.
IOW, her son (since this IS based on history in some fashion, we having found both Heorot and Beowulf's barrow) was some kind of lunatic or thug who terrorized people, and after he died, she took up the Blood Oath like a man, and acquitted herself well enough to earn respect.
So she very well could have been beautiful or charismatic.
People make the same mistake with Jekyll and Hyde. Hyde was NOT monstrous.