i have never played-seen redfaction, i only have caught some words about making holes on walls or even destroy entire buildings...a geo mod like this i presume it will require a development "geo mod oriented" of the code, so it isnt strange that it will be " a little problem" to implement geomodding on an engine not studied for this purpose
but more important i'm not sure it will be so useful applied to a space sim....i'll try to explain:
a "full geomod" could have a sense on big ships or space station, but not all the parts of a ship have the same importance... because ships are objects and not environment, so heavy geometry modifications should work taking care of hp of the ship and the relevance and the role of the area destroyed (engines instead of hangar bay for example..), so it would be probably done better by making some ships of more destroyable subobjects
a "light" geomod could have more sense probably, just a dinamic and geometric way to simulate some kind of damages like collisions or explosions:
i can think of something like the deformation tolls included in most 3d modelling packages, like even truespace, don't know if it is possible: a 3d grid (a cube for example, but why not a deformed a sphere..) include our model, we deform the grid extruding or intruding a point, then the deformation will be proportionally applyed to the model using intensity and direction as parameters
in this way we could simulate for example explosion/collision damages:
the direction of the deformation of the 3d grid is determined by the direction of collision or of the missle, the intensity is determined by the strenght of the collision or by the power of the explosion, then a multilayer texture is applied to the deformed area to simulate damages or burns
to reduce the amount of geomods we coul set the deformations to happen only if the ratio between strenght of damage and mass of the ships is over a certain amount, so a light missle may deform a fighter but not a capship. others parameters and heuristics may be occur to deal with some point like resiliance to deformation, range of deformation, multiple deformations and so long.
a problem could be the polycount, what for example a geomod that will affect only a single big face of the model?? that face should be subdivided to apply the geo mod, but it will increase the polycount