"I don't see a problem with the lack of breathability. It's not like the breathable jackets breathe much at all and it's not that long ago that rain jackets were all non-breathable like this one."
Inaki makes a very good point here. Even with todays modern material, I have yet to find a rain jacket that is truly breathable yet water resistant enough to keep the rain out over several hours. I found that every one I've tried builds up condensation during times of exertion. For me anyway, I've found that the only way to minimize the condensation is to use the openings on the jacket or poncho to allow air to flow through.
On my last JMT hike, the poncho and Gatewood Cape people seemed to make out better than most. None wetted out that I talked to, all had their packs covered by the poncho, and they made good time while walking. The guy I saw with a GC used his trekking poles and only had his hands sticking out the opening, which seemed no more exposed than hands sticking out the end of a jacket sleeve. The ones that fared the worst were the ones who brought only wind jackets, and there was a few of them. I saw one guy shivering while scrambling to set up camp to ride out the rain on the south side of Mather Pass.
I used a Dri-Ducks jacket and was very happy with it, kept me dry the whole time. But even the material on that did not breathe very well.
To be honest, I think that Cloud Cape would probably do fine. I had never seen one before and it looked small when I first saw the picture. When used in conjunction with something to cover the lower parts, I'd expect that it would fare as well as a poncho, except that it wouldn't cover the pack.

