Ah, I was looking at the guides which do fall off, but in order for the hairs themselves to fall you have to set the hair roots (Hairs tab) to As Guides. That will reduce your hair amount to the number of guides you're using, but you can fill it back out by using hair clones (also in the Hairs tab).
Try this one:
8584_hairamt.c4d.zip
I also add hair collision tags to the S and floor.