Earlier quoted context omitted.
The claim that current technology is insufficient to replicate it isn't subjective. Perhaps the point should be that we lost sense for a particular aesthetic during the transition to 3d graphics techniques.
I don't think that's true. While physics for clothing have gotten a lot better, it's a lot of visual flash that seem easier to work like scarves, coat tails, pieces that hang down, etc. I can't recall seeing the kind of bounce that those old school pixel art pants have. Those Aladdin/MC Hammer pants have a weight and shape that I imagine is still really difficult to replicate well. But maybe I just haven't seen such…
Of course, the animated clothing in those pants wasn't from a physics engine. I'm sure similar results can be accomplished in 3D if they're not phsyics-based.