Dynamic fabric is something I'd love to see more artists working with. So far the most impressive example I've seen is ZEITGUISED's geist.xyz: https://vimeo.com/150824660 Undulating impossible fabrics with photo-realistic shaders (and a soundtrack that makes my head hurt). It's definitely an experimental art film but it feels more like an impressive tech demo for what they've been able to accomplish with textile simu…
I am fairly sure they were not using custom software, rather off the shelf tools for both rendering and simulation.