Blender is what I use and this morph creation is a pretty simple thing to do, especially for something like this Velco strip.
Here is a link to an example I did for filling a cup with alcohol from a bottle and then have the character drink it.
I have linked this to where I showed how I modelled it, may give you some ideas.
I also did bed modelling for a character to get into and out of bed using morphing
This one is along the line of what you want to do I think. Its just this is wrapping over the whole body where as you only want to wrap it around an arm
I also used this process to create beach waves, which I am still working on to improve ( especially with the new particle abilities in iclone 7)
I am also working now on an animatable snake for my harry potter fan fiction story. I also did the bed for that as well
Anyway if you want to give this a try and you have any questions then post them and I will be one who will be happy to help you out as much I can.
This should be pretty easy as a staring point for this method
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