It's fully capable of independent flight and a degree of dexterity, for lack of a better word. It usually floats around in midair when he's not wearing it, but it's able to fly pretty fast on its own. It's also able to wrap around objects in order to grasp them and appears to exert at least as much force by doing so as a human being would be able to do. When I say it blocks attacks, I mean that it actively intervenes.This promo video is a bit terrible but should get the idea across. Think flying carpet from Aladdin. I'm aware that this is ridiculous.

It doesn't look like it's reinforced with anything other than magic, so I agree about nerfing the durability to normal clothing levels as well as nixing the flying Stephen thing. I've drafted a nerf in my app-in-progress, so let me know what you think.

"At full power, the Cloak would be strong enough to lift Strange, giving him limited flight capabilities (also, enabling it to drag him about against his will), and sturdy enough to block attacks made with bladed weapons without being damaged itself. In Norfinbury, the Cloak would retain its ability to move and act, including the ability to hang in midair when not being worn and to wrap around and roughly manipulate objects. It would not be capable of lifting Strange (or any other heavy object) and would be rendered about as sturdy as any quality garment made of heavy fabric, nullifying its usefulness as magical armor."

I'd be open to it losing some of its mobility as well, and/or putting a lower/more specific cap on the amount of weight it can lift. Mostly I think the net effect of having it in game is that it'll be conspicuously magical and that it'll go and get itself hurt trying to defend him. I don't expect to do a lot more with it than that.