I use Hockey tape
$3 a roll and I can replace it about 6-8 times
It's not soft, but cheap and you can get some nice colors. Just make sure you wear gloves. I've rewrapped my bars about four times and everytime it gets softer.
If you have any athletic wrapping or spongy wraps, you can warp that over before you apply the hockey tape, makes it ultra squishy, but be aware of the rain.
It's on sale too!
http://www.hockeymonkey.com/rencolclotho.html