Both conforming and dynamic clothing have their pros and cons.
The advantage of conforming over dynamic is the morphs which are often present in the conforming items (not only bodymorphs, but also additional morphs such as open/close, lift, twist, etc). Most dynamic cloth does not have these and it is sometimes very complicated or impossible to do without serious modifications to the cloth itself.
With dynamic clothing it is much easier to create natural clothing shapes and they do look better. In animation it saves tons of work to use it.

Another often forgotten thing which comes into play with dynamic clothing is that you have to adust your workflow and start planning your scene in advance. Frame 1 zeroed figure, frame 5 morphed figure, frame 30 posed figure. If you have it interact with props, then you need to position and move these so they end up in the pose of frame 30 and do not interfere with the draping of the cloth in earlier frames. The order in which you run your simulations become important, etc.
With conforming clothing you do not have these problems