The current avatars are great, but just an added level of realism would be to have skin that appears and acts 'soft'
Maybe something for the next gen avatars.

So when for instance a strap or elastic waist band on an outfit would sink a little into the skin rather than sit on it.
Also unless the character is super fit and abs like steel, the skin or fat layer under the skin should move a little when the character walks/moves. Similar to the spring effect that can be used on breasts etc. 

I know that some clever people have come up with some workarounds, which are good but have limitations due to the feature being added to the character rather than being a native part of the character. So it would be good to see this as a standard feature on avatars.

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Look up soft body physics. There is simply a map you can add that will give jiggle effects and allow skin to deform. This may be your solution.