Can you give any examples of those PS2 games? I'd like to at least see a video of the "realistic hair physics". I'm no expert (at all), but it seems like it would be harder to do the hair animation for something like Skyrim where you have such a great variety of hairstyles and equipment (ie: different shaped helmets). Maybe I'm looking at it wrong, though (don't know much about programming and stuff).
I'm not opposed to faking the effect, but otherwise...