Now what I want to do is take that physics and geomodding engine and slap it onto a terrain engine like the one in Quake Wars.
Then make a game sort of like Magic Carpet, but being a wizard on foot and being able to do things such as tearing forests apart (and on fire) with meteor swarms.
Then steal a page from Dark Sun and have sides gain and lose power based on preserving or defilement
(i.e. preserver players start with more mana but it's harder to play as you need to use shielding spells to protect trees, villages, etc. they also need to be more careful in their offensive spells)
Couple this sort of physics engine with some good particle and shader effects and you could have in addition to the standard destruction too many arcane spells cause 'arcane corruption' as well. Nothing quite like a prestine forest becoming a sorched wasteland with charred tree trunks and strange wisps of magic everywhere...
Similarly tossing in liquid physics for use in water and things like magic shielding would be good, even low resolution liquid physics. (just imagine a sphere being distorted and pounded by the impact of incoming effects, and the goal isn't actually to dispell the shield 'damage points' wise, but to distort its shape enough for it to dispell)