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.
Tends not to be a linear progression at all; if the attention of more than a couple researchers is applied to any of these things then they grow very quickly - couple this with improvements in parallel processing power and it becomes quite viable. (see: physically based lighting, rigid body -> full crumple simulation, fluid dynamics, Photoshop's "smart fill", or really any game tech)
Apropos of nothing: Same applies in terms of hardware - what we can do with light field cameras now was science fiction just over a decade ago, but within a couple years of crossing a research tipping point we went from 10x10' camera arrays to <$100 hand-held commercial products.
source: graphics tech and SIGGRAPH nerd for the last 23 years
actually there was an extremely slow build up of this tech, with a sudden and rapid escalation - but between 1908 and 2010 was a very shallow incline :)
Ask Pixar how much time goes into draping a single VR garment on a single body. It's hard work, regardless of how good your imaging tech is. The ongoing hurdles are about modeling, based on cloth properties and personal anatomy. The margins on "try on at home" absolutely don't justify modeling every singly piece of clothing into a technically-accurate VR solution, and if you do anything less people will return your produce when it looks nothing like the VR visualization.
Asserting that a good VR technique will justify real-world modeling is downright stilly, and it leads me to ignore non-tech assessments of whether that project is worthwhile.