Hair/clothing/gear clipping is a major distraction in RPGs ... and the current solution of just removing choices is lackluster.
So yeah they need collision detection and IK.
Pre-determine as much as possible and offline animate it ... the less models with the less variation in gear/hairstyles/etc you have to do it for the easier it gets, so offer less choice ...What specifically is this current solution you are talking about?
Is it me or does the game look like a giant QTE in a corridor?