Yes, that's what I'm talking about. By thick rainy weather I love nothing more than a coarse knitted woolen sweater and a heavy tweed jacket. It's warm, breathable and I'll never stay so long under the rain that it's soaked.
As far as strictly waterproofing goes, you do need coating or some hybrid material with PU weaved in. IMO it's more useful as a wind barrier than anything else.
Yes, you're wet, but you're still warm.
Many outdoorsmen prefer this to the uncertainty of being able to keep their gear dry.