"Yep, you can save the modified object.
You can save it as a prop, as a smart prop (parent to the hip) or you can export it as an obj file."

True, but only 1/2 the story..:-)

If you save as a prop (smart or not), the origiinal basic shape will be saved. It will have to be re-run through the cloth room to re-fit it.

If you save as a .obj, save from the frame you like best (usually one of the later frames, after the cloth has been "fitted", while it's settling down - very often the last frame).
This will save the cloth as it was after it had been stretched etc. Be warned 'tho, that any textures will probably be lost unless they're very simple ones (diffuse colour etc) as will any constrained etc. groups (at least, this was the case with P5, not sure about P6 and later). However if you just make material groups, using the grouping editor, then these will be saved with the .obj.

This can be taken one stage further later..
If you're building a still scene, it's annoying to have to go to frame 20 (or whatever) every time you load the scene.
What I tend to do now (for each character in the scene) is:
Get the cloth to drape propely on the posed character. Since this might take several attempts, I save a pz3 file all set to go just before hitting the "calculate simulation" button for the 1st time.
Once I'm satisfied with the result, I export the cloth (as .obj), the enter the animation pallette, highlight that whole frame and drag it back to frame 1. Then I delete all of the remaing frames (by setting the end-frame count to 0 - and agreeing to the nag popup), delete the cloth (which by now has reverted to its original state and import the saved .obj. Only then do I start apply the proper textures...
(I work variations on this theme, but that's the basic procedure I use..)

Cheers,
Diolma