Have you tried anything like Nair? I use the Shower Nair on my upper lip and for the strays on my chin. Leave it on about 10 minutes and just wash it off in the shower. Doesn't smell good, but works fairly well. It might lessen it enough to help your feelings of insecurity over it. I'm not sure how Nair would react with your folliculitis.
I can see where waxing would be rough. Does shaving your legs give you the same problem as waxing?