There should be separate aesthetic capes.

[Nezerius]

Just want to once again bring up this awesome video of when Odin's armour had a cape.

Looks way better with it, too. The adapted Crystal Tools for FFXIV actually does support cloth physics, including not having it pass through your character, though they took it out of the build for FFXIV.

While I understand that you're simply linking a video of Odin's cape in action, the armour obtainable by the player never actually had the cape attached to it. Odin also never appeared in 1.0.
The one who made the video likely just used a method to turn their character into the actual Odin FATE model, since that one does have the cape.

But yea, capes would be cool, as long as tails don't clip right through them.