Bradley,
Yep, just plain nylon is used all the time! Roger Caffin makes some great MYOG garments he used on his trip in Europe.
It is important to distinguish DWR from fabric material. Schoeller, eVent, goretex, nylon, etc. and even windshirts can have DWR. I'm pretty sure cheerios could have a DWR, though this might negatively effect flavor. A fabric can be very breathable and have a DWR treatment. I'm no chemist, but basically DWR helps shed water as opposed to absorb it.
What distinguishes schoeller, eVent, or a windshirt, therefore, is not DWR but what it is applied to. Compared to an eVent or goretex hardshell, a windshirt is much lighter and much more breathable. However, as Tom notes, it will not stand up to precipitation like those hardshells. Windshirts are at best water resistant, but provide protection from wind and some warmth for very low weight.
The question is: what do you want to accomplish? Stay warm? Stay dry? Both? An insulating layer/windshirt/hardshell combo provides lighter, more maintainable, and more flexible solutions to these questions than softshell garments. And don't even get started on where things like ponchos and parkas figure in!
If it is really raining, you will get wet. Period. From either inside, outside, or both. The trick is to stay warm and relatively dry (as opposed to just standing in rain bare *ss): wet ok, cold definitely not ok and in fact dangerous. So, if it is cool but not cold, I may throw on a hardshell top in hard rain but stay in my shorts- legs get wet, but they also moderate my core temperature, and with a merino base layer I stay non-hypothermic. If legs and me start to get cold, then rain or wind pants come on. My legs may still be damp due to perspiration, but at least they stay warm. Best of all, at the end of the day, I can dry out the stuff I need to dry (as opposed to being laden with sopping heavy softshell gear).
There are lots of threads here about the use of hardshells versus windshirts. Do check them out. Many variables to consider: expense, sacrificability, durability, weight, other articles of clothing in your system, prevailing conditions, etc. My current personal preference is that, most of the time, I prefer an extra fleece layer as opposed to a windshirt. Yes, it is heavier, but even windshirts make me feel clammy.
Hope this helps,
James