Here's a different idea. This time I made a sleeve and "cheated" by having the edge of the sleeve go all the way through the wrist. I tried it as a soft decorated group but it didn't work because it was colliding with the figure. I put it in the choreographed group for this example, but obviously that would not be appropriate if it were actually moving from this spot. The constrained group seems like a better idea. But at least it's starting to look like cloth with actual thickness.