I think it would be wrong to see a feminist respect for the culturally and religiously informed choices of Muslim women as an example of "choice feminism," with its roots in capitalist libertarianism. I'd imagine that is is something like a precise opposite of that. "Capitalist libertarianism" is an extreme example of viewing individuals in isolation, abstraction, from the social and cultural practices that in fact help to define them. It seeks to view individuals as abstract freely choosing entities, completely distinct from the social and cultural forces that shape their identities
Opposed to that is any kind of perception of people as being essentially socially embedded, partially defined by their membership of a group -- in a manner that is either oppressive or liberating depending on the nature of the social relationships they inhabit.
(Non-libertarian) feminism states one sort of social embeddedness of individuals: we are shaped by socially constituted gender roles and we achieve liberation by transforming them. But equally, an approach that embraces women's partial self-definition in terms of a rich culture of faith is a brake on libertarianism: individuals can't be viewed, in isolation from a heritage, as abstract enactors of some illusory realm of pure choice -- they achieve self-realisation (as well as suffer frustration) through their embeddedness within cultural practices.
There is a point of intersection between feminism and faith where both our status as women and a status as practitioners of a particular faith can be examined as sources of both constraint and self-realisation. That is a mile away from a preoccupation with facile notions of choice.
Oh, and a third form of embeddedness is within the racial/ethnic boxes that society's prevailing categorisations set out for us. We live in a society where certain groups are "other" because of of the orientalist lens through which non-European cultures are viewed. The conscious choice to wear a niqab or not can be a radical, challenging stance taken towards that particular set of social relations, -- something very different from the consumerist choices honoured by libertarianism.