I understand that modern outer layers are more functional. A leather jacket, for example, can be dressed up or down so as to be worn in a variety of situations. It is also better at keeping you warm.
However, I think capes/cloaks are more aesthetically pleasing garments. It also feels good to have the fabric flowing around you as you walk. But what do you think?
I think this is why the cloak died. Sleeves are just so useful.
They can kind of get in the way though. Cloaks could give your arms more freedom of movement if you really need it. I could see a resurgence in military and/or trade uses.