Well ....I would say that BFBC2 is and BF3 will be a good examples of object destruction, it seems pretty impressive to me, I played the BF3 Alpha ...shoot an RPG at a large corporate building where someone is shooting at you using the wall as cover and you will blow a massive hole in the wall....shoot the RPG multiple times and parts of the building start falling off..
Shoot just about anything and its breakable.. still got impressive FPS while all that was going on...maxed graphic settings...
I just wanted to break up simple objects for starters in the Leadwerks engine...crates, barrels, maybe a building ...
I was only concerned because I didn't see very many youtube videos about Destructible objects using the Leadwerks Engine...