It's amazing to see how far animation technology has come in the space of a few years. It was only a few years ago that a buddy of mine, who was a Senior Tech Lead at Mainframe Entertainment (dev house for Beast Wars) was developing the modules for individual hairs. Back then, hair and fur were only done by texture mapping, looked like helmets and didn't move separately from the subject (ie. Reboot - Dot Matrix's hair). Phil had just gotten short hair on insects to start looking right and introduced it in a Beast Wars episode somewhere in the middle of the series. Longer hair/fur was in the works.
Now, we have stuff like Dr. Aki Ross' hair (Final Fantasy: The Spirits Within) and Sully's fur. It isn't perfect either, the movement is very sluggish and deliberate, but at least it moves individually and "reacts" to environmental stimuli.