Wouldn't it be epic if you could be standing a top one of the Skyrim mountains and have your cloak or something blowing in the howling wind, or perhaps wandering through a thunderstorm with water glistening of your armor, the immersion it would add, although I know this game will be mainly first person, so it might be better to focus on other things.

I wouldn't mind cloth physics... if they make NPCs sleep in bed, rather than on it. Have no personal desire for capes/cloaks, but technology with multiple applications is always good.

I would personally worship Bethesda as my deity if they added this. It's the small things that make a game awesome adding capes would be cool enough but physics to them would be awesome. Perhaps let blood stain clothes as well and the only way to get them out was to was them which you could perhaps pay for as a service or do yourself. I can imagine it now my redguard warrior/ barbarian in fur armour and a fur cape in battle with a bandit; after the many slashes and blood spilling there is blood all over his cape and it stays there until cleaned. He goes to the lake and cleans the blood out in the freezing water. Hurry up skyrim!!

ultimate hardcoe immersion mode, I hope they make some good more normal looking armor, I love the natural look of some of it, it gets boring after a while walking around looking like a demon from hell, I loved the holy crusader armor partly because it looked more normal.

Running around the wilderness as an Orc in fur armour armed with a iron battle axe was just so fun. While the glass and daedric armour was nice it just got too much sometimes. I love the battle of kvatch where everyone is in kvatch chain mail and I'm in my iron armour fighting alongside them it looked so epic, more realistic and gritty with the heavy rain and smoke everywhere.

I'm hoping skyrim will have a more barbaric and gritty tone to it, though i hope the environments are stunning

Cloth physics would make an huge improvement and close to the top of my most waned features of the new engine. In this day in age with Quad cores being the norm. and six core CPU's trickling in its a no brainier. With DX11 they could run it via direct Compute on the graphics processor if they wanted.

The blood actually sounds horrible lol, let it stain me sure but damn I don't want to have to find a river after EVERY fight because it won't go away that would be super frustrating.

I agree haha, perhaps a hardcoe mode could implement necessary cleaning

I wholeheartedly agree - clothes physics would be great. And, I would guess we'll be seeing that in Skyrim, as it seems to be one of those latest fads in game design.

The return of capes & cloaks would be terrific, too.