Carrara's soft body Bullet Physics can do great things in the form of drapes, curtains, flags, blankets and many other objects made into soft body.

Like , I think, all cloth physics simulators there is the possibility of poke-through and/or explosions. It seems to depend on bits of colliding meshes being in the wrong place during iterations of whatever collision calculation is taking place. (A calculation could, I guess, be looking at vertices colliding or faces or edges but collisions aren't always detected for whatever reason and one mesh passes through another or else gets tangled up).

A work-round for the problem with hands is to attach another object, such as a flattened sphere, to each hand, in a parent-child relationship. After the simulation is run, make the objects invisible. It might take a few tries to get the right amount of protection from poke-through along with the spheres' outlines not being obvious on the covering cloth.

The major flaw in Carrara's soft body is it's failure to work where an animated mesh is being collided against (such as with the legs of a character walking). There will almost always be entanglement or explosions.