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Sal.Paradise said:

Lol ok, we agree. The same principle, but a misleading example. That's what really annoys me about it.

(I also like how his hair is just a fat grey blob, convenient because hair is by far the least convincing aspect of character models today, and the one that will see the most benefit with icnreased power.) 

His hair may very well be animated with blob-mechanics or something similar due to its style. Texture would be enough there. What I mean by this is that some animations would suffice to give a proper visual representation of a real-world object without having to go with full-scale simulation. 

I agree that it would be different in the case of a long straight-haired character. Mind you, we already have hair dynamics current gen I believe, so again diminishing returns would apply.