Cloth Sim domain

When doing cloth sims, I had an issue with self-collisions. The mesh would "collapse in on itself" I learned after a while that it was because the distance collision was larger than the distance between the mesh vertices. I don't understand the inner workings too well, but it was something to do with floating point integers?

I was thinking that with a domain setting like with fluid sims could focus the simulation so that small scale cloth sims would be possible.

As I said I am not too knowledgeable on the inner workings of blender and don't really know how difficult this would be to implement. Thank you, anyway, for taking the time to read this.