I -love- dynamic cloth, although my attempts to turn conforming clothing into dynamic hasn't really gone very well :( I definately wish there were more dynamic cloth items out there.  I have a huge list of things that I want to be dynamic.

As for hair, tbh I haven't really seen much of it since it first came out in P5, and it really didn't look very good. That said, I've used Tiny's furred cat and rat and they look amazing.