Unless ZOS become the first MMO developer to solve the numerous rendering problems cloaks have (issues such as clipping with unequipped two-hand weapons, hairstyles, etc), then no thanks.

We already have bad clipping problems with back-carried weapons and several hairstyles, as well as clipping problems with gear, which make many hairstyles look absurd, cloaks are orders of magnitude worse for this. Unless they're visually sensible then we don't need them in the game .. and as @TheLaw noted the game can't cope with small furry animals scampering about with little animation which ZOS had to remove, God help us if it's asked to render something as complex as a cloak fluttering in the breeze.

How about fixing the cloaks we have first?
Signed
NB

Rendering physics on clothing can be resource intensive, so its hard add in cloaks/capes that move properly as you walk or as the wind affects them and so on when you have an unpredictable number of people in the same area all with cloaks. Going into the bank in a place like Stonefalls if half the people in there had cloaks/capes would probably freeze most people out from the lag. You can have cloaks in a game like Skyrim, because you're never going to have more than say 20-30 npcs on screen at once (it doesn't matter how many are behind you/out of vision since those aren't rendering) and not all of them wearing cloaks. If you look at people moving, their clothes are part of them in most games and this one, as in they don't move separately because they are rendered as part of the character model essentially compared to if it was able to shift around or have wind tugging at your sleeves and so on.

What TheLaw meant was probably Cyrodiil performance (which is particular affected by players, since they are clustered in keeps and so on, more so than randomly in the wilderness in PvE for instance). If you have 60 people sieging you and you already have everything else going on (which drags the game to a crawl atm in some instances), then those capes are going to be a huge impact.

They could contain most of the work to the client by only tracking the physics on the client side and not bothering to track where the player's capes are exactly (otherwise that adds latency issues rather than just rendering/physics issues). This means clipping will get even more out of control than Kragorn already mentioned. And if they tried to account for weapon position and the capes movement shifts resulting from them, that is a lot more work on top of everything else. Its not just rendering these changes, its also calculating how the changes need to happen ie physics, and collisions with other players means that data has to go back and forth and can't just be done by the client-side processing again.

I would love to see capes and cloaks. They would be awesome, just like how I love them in the Skyrim mod I use. But I don't want them to be added until a lot of other things are added, because that is way too much work to bring them to the game which could be used on new systems like the Justice system we just got and the spell crafting system coming. So this should be something to consider in say two years, after player housing too (since cloaks would be at least as development work as that, to put it in perspective- its not just a matter of an artist drawing the cloak and a modeller making the object and an animator creating the movements and... all the work that is needed just for that... but also a lot of coding work and testing).