Today I have found a solution. It's not very fast or efficient, but it does work, is animatable, and fully procedural.

It works at different daylight settings.

It can be made to look like overcast.

Beautiful shadows.

Very dynamic!

Here's a view from the top

The secret? Lots of slices. With clay mode turned on, you can see the edges and shadowing, but with the right material properties it practically disappears.

Here's a video of the clouds in animation (http://youtu.be/-0NtjN80i2g)
The step-by-step for setup is
1. Make a very large plane (to the extent that you want your sky to go). Make sure its geometry is as simple as possible (should be 2 triangles / 1 poly )
2. Stack/instance the plane upwards in small increments. The spacing is essentially your 3D resolution for the clouds. If they're spaced out too much you will see the difference in the layers too much. Too little and your clouds won't be able to be very tall. I've found that 15-25 layers is a good amount of layers. Above 25 and it will start bogging down the GPU with all the light bounces through layers with an opacity map.
3. Make a new Diffuse material and apply it to the stack. This next picture will show you how to set up your material. I set mine up in 3DS Max, but the settings will work with any version of Octane.
