I'd love cloaks! Never understood the general anti-cloak attitude from the ESO player base I see on the forums. Clipping could certainly be a problem, but clipping was never *not* a problem for anything else in this game (or any game for that matter).
Minor clipping is something we could easily ignore, the same way we ignore the current minor clipping that exists in-game for many armour/clothes/weapons/hairstyles.
If you have a character with long hair you will see why capes are a very bad idea.