FFXI also predates WoW.
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Yeah, City of Heroes (rest in peace, sigh) did it the best, even still. Kind of crazy how a game that was so old and now dead (sigh, again) did them better than any other mmo i'm aware of. They still sometimes looked "odd", with stretching, and behaving weirdly, but so much better than the WoW cardboard, and even other ones who glitched out more often than not. I'd rather they not do them, if they can't do it better than CoH (with physics and huge variety) then don't even bother, but often it also doesn't really add anything i feel.
I think that I would rather see my belt rendered on the model than to see the addition of capes.