Me, a Neverwinter Nights player, always noticed these small, subtile movements in a person\'s clothing as they moved around the world. It looked great, in my opinion. Also, it was possible to influence the clothes by applying a certain force to it, such as wind.
I know that this isn\'t possible in this current stage, but it might be possible in the future, perhaps when the development team begins to focus on graphics, as this effect greatly increases the realism of a world. Such a effect would look great when, for example, you would be wearing a cloak.
And concerning lag, there wouldn\'t be any if everything was calculated client-side.
