Just because you have this weird preference of thick plastic or rubber hair, that's moving and layered like tentacles (you even prefer DOA4's hair over DOA5), does not mean it is better or let's say technically/graphically more advanced. On the contrary, Tekken 7's hair actually cuts a lot more corners than DOA5's hair:
Tekken 7 uses visibly less polygons to model hair. You clearly notice the angular polygon shapes. The alpha effects it uses to create fringes and transparency are of lower quality and resolution as well. It is simply a fact and you can easily notice it by direct comparison.
Now, you might not like the transparency effect DOA5 hair uses, because it makes the hair appear thinner, but that is a subjective feelingy you have. Objectively, technically and graphically DOA 5's hair is of higher quality. Period.
One aspect that Tekken 7 is of course much more advanced in is overall physics. Those physics, like realistic movement for example, are mostly not even applied to hair though. You noticed yourself that they actually cut that back on Lili's part early in the development of the game. So not even in that regard can Tekken 7 actually point.