As much as I like cloaks, I wouldn't want them unless they could figure out a way to make them look good and move well. I don't want cloaks that look like they're plastered to my character, which is probably about all they could do without cloth physics (or a whole lot of crazy animation work that probably wouldn't be worth the effort).
Well you know thats there is different way to make cloaks be eyecandy then using resource hungry procedural animation from cloth simulation?
I mean they can be animated with cape bones and additional animation
for example thats old PS2 game Berserk
http://www.youtube.com/watch?v=8c-9JdUHYB0
Hairs and capes was animated without of any new technologies like Havok Cloth or PhysX, and they looks realistically
But also did you remember Liches in Oblivion?
They have animated robes and amulets (and cool hovering also B) )
They have similar to this skeleton
http://www.tesnexus.com/downloads/images/37596-1-1300222130.jpg
Modders before also try to make similar animated clothing for Oblivion but they encounter a problem
Oblivion has flawed animation blending as well lack of resources like time, tools, skills not allow achieve completely the same effect
http://www.youtube.com/watch?v=p-RrLowTRlA
With new technology of havok behavior thats enchant animation blending and creating of new ones adding some additional bones to clothing and hairs can greatly increase visuals of game almost without loss of system resources, just imagine idle animation thats move hairs like in wind, clothing thats treble in jump and others.
Since such anims hand made there will no strange behavior like with procedural animations can eventually pop up, but animations will be not have variability as procedural anims have but does thats will so visible?