Character model will not be a whole model ,only some parts , the clothes will be separate parts , there is no overlap.
This effect was used in some skiing games, where clothes begun to have faster wind like effect as the player moves faster.
For example on pants only the back facing parts will have some movement, while surface normal to direction movement will not move as much, and the movement will be bigger on lower parts. It's not for regular clothes, more like skiing clothes.
Because the shader works in world space, it won't be complex to move vertex using character direction.
it's an experiment, i don't want to use multiple bones i would have to animate manually, instead a cheap effect could look good.
For physic clothes, they are very linear, you won't have wind effect with clothes doing small movements variations because of high speed movement.