What he said about the trailer being on Xbox
That doesn't really make much difference, if you read the recent interview when asked whether Skyrim would support Direct X 11, Todd mentioned that the focus with graphics is on allowing the game to look the same on all platforms, which seems to me to imply that if the Xbox 360 version doesn't have cloth physics, or any other technical feature that players will be able to clearly see, will not be on any platform. And even that's not the case, we haven't seen the game on any other platform, so we can't exactly judge how the PC version is, can we? We can only judge what we HAVE seen. So how can you be so sure that the PC version will look better? For that matter, how is that supposed to satisfy those who will be playing the Xbox 360 version?
I mean yea, there isn't much from the trailer to go on. That's why I specified a single scene that I think shows it best. From what I could tell the fabric didn't move like it was pinned down to something but flowed with the movements of the body
Well, perhaps that's what you saw, but at least it didn't look that way to me. I guess we just haven't seen enough to be sure, though just going by what we've seen so far, it doesn't look likely, to me.
I voteed "yes" because I personally want it, but more realism to a game doesn't equate to a better game. It completely depends on what the focus is. Especially for a game that is primarily a 1st person singleplayer experience, I do not want Bethesda to focus too much on realistic details such as these. Work more on the environment and whatnot, Bethesda might have top developers but their economy is not even close to that of Bioware, Blizzard or even Valve. They can't do everything for the game, so they need to focus on the most important stuff that matters for more people.
Actually, I'd argue that a first person game needs realistic details more than a third person one, because you're going to be looking at things more closely, thus, lack of certain details tends to be more noticable. Admitably, you're not going to be looking at your character as often, but in Morrowind and Oblivion, the player character used the same models, when in third person, as NPCs, and I'm assuming that's the same in Skyrim, and even if you argue that since you're going to be playing in first person, it doesn't really matter much of the player character doesn't look good, but the NPCs aren't likely to look any better than the player character, and you're going to be seeing them a lot.
Still, it is true that realistic cloth and hair physics seem to be reletively new, so I'm not at all surprised that Skyrim doesn't have them, it would be nice if it could have them, but it's no surprise that it doesn't.