Would dynamic, soft-shadow buffers be possible (from an actual functionality standpoint) to be cast from everything onto everything? <<
That's possible, but to get good results (and avoid aliasing) you need *extremely* high-resolution shadow maps, such as 2048x2048 or higher. And the performance impact of rendering shadow buffers for all objects in the scene for every light (as opposed to only dynamic lights or dynamic objects) is fairly high. This seems like it will be a viable technique in the future, perhaps when GPU's are 4X-10X faster and state-change overhead is further reduced.