It's still be cool to keep this thread open and juggle ideas for making good cloth hairs. The community would benefit a lot from them. I need two hairs for my own projects, a long, wavy female hair and a long pony tail. I'm going to start there and see how it goes.

One issue is when the dynamic hair intersects with itself, creating render artifacts. The one to the right has no soft decorated group, only a bunch of cloth segments. The one to the left has a soft decorated group over it, a first layer of thickness which does look a bit better! 

If I have too many layers, they may cut into each other, if I have too few, they may create too many gaps. There's also the issue of when the character tilts her head. More than one layer is kinda necessary, like up at the top, some that begins down at the ear and so on, otherwise she will look very bald underneath when she moves her head in any unusual position. The textures is a first rough, just to get a general feel how it works, with a really rough trans map too.

I know it has a ton of potential, just need a smart method to do it.