Even if polygons weren't the limiting factor on the shoe laces or hair, the cost of computing the physics will limit how detailed things get. Need more cores...
Of course. My point is that polygons aren't the limiting factor today, so having unlimited polygons wouldn't "fix" that. The GPU typically determines polygon budget, with the CPU determining physics and AI.
Of course, you can dump physics onto the GPU, but that will cost you polygons. I guess that could, in theory (if you really had unlimited atoms), give you more cycles for physics.