Ideally (Albeit Expensive) Rosco Flexbond is going to give you the best Flexible finish on Foam. at $35 a Can..a bit pricey.
I have been using Plasti-Dip on most of my parts and it holds up fairly well, though you are going to get wrinkling in places that flex a lot. The PVA Glue method can work without the Smooth-on.
Lately, I've been testing out different paints and how well they hold up. The Winner is Angelus Leather/Vinyl Paint. No cracking, no peeling, very flexible. I didn't even need a sealant except for painting Light colors on dark foam. It can be airbrushed.
Other options include Thinned out Plain old White glue. The only drawback to it is that you risk ruining the painted foam if you go out in the elements. Glue melts in water.
My favorite and easiest access to is Plasti-dip spray and then airbrushing the Angelus paints or Createx brand. Airbrush is will give you a Way better finish than any brush job.