A none scripted, dynamic and interactive representation of the real world.
CellFactor does a better than UT 3, perhaps why EPIC bought the IP.
Darkest of Days did a great job woth smoke/fog...in combat blackpowder obsures..also your line of sight.
And I still enjoy that game today at LAN parties with buddies, tearing down strucktiures and using the as kinetic weapons is just so Jedi-like
Cryostatis tried tackling the most demanind physics out there: Fluids...and did a pretty decent job, with the horsepower available.
Metro 2033(PC version) rasied the bar once again, its physics tick-rate and it ragdolls are some of the best I have seen in any game.
Then you have the GRAW games, where sharpnel is lethal, and not just a blob-zone of damage, like in BFBC2...which is nothing but scripts, not physics...but yet accomplished to fool the lesser knowning.
And suddenly the crowd goes wild...they have something they THINK is physics like PhySX...and then it's good
Infact games like MZK does a better representation of the real world:
http://www.youtube.com/watch?v=B17ngrboukE
People thinking that a 40mm fragmentation grenade will make a 3-4 meter wide hole in a brick wall don't have a clue.
BFBC2 is way of target, but for kid who have never been in a warzone and only knows Hollywood war, I can understand why they get fooled.
Problem is that physics is just as (I would say more) demanding as raytraycing.
But that is no reason to limit our selfes to the lowest commmon demominator, the CPU.
Progress dosn't come from that, it comes from pushing into higher grounds.
I blame AMD too...for just talking and talking..since 2006.
That has split the market into several groups, the worst being the butthurt AMD fans who lack GPU-physcis support and thus flame out of envy.
But be assured if ever AMD comes with GPU-physics they will hail it like the second comming
They just wont like Mafia II...because they feel left out *shrugs*