And yet... Check out the bodies displayed at 2:08. A good range, but nowhere near the range in effect for real people - and at least half of them look noticeably wrong to me.
The cloth displays aggressive horizontal wrinkling, in a way that makes no sense. Check out the center-most figure, whose shirt curves in below the stomach with extensive wrinkles that gravity should remove. All of the figures display confusingly broken folding on the horizontal plane - the leftmost model stretches the cloth across the chest, then displays bizarre smooth-to-wavy patterns at stomach height as you move from front to side. And as far as I can see, all of this is weak to multi-layered, stiff, or tailored cloth.
So yeah, I appreciate this, but I think it's woefully inadequate to modeling even cheap, popular clothing. That's going to take a few more breakthrough as large as this one at least, so Magic Leap's VR abilities aren't nearly enough to justify this business model.