Forza has it. GRID has it. Heck, evenhas it. We now have video proof, coming out of Gamescom 2009, that Gran Turismo 5 will finally get damage modeling.
Of the 1,000 vehicles available for play in GT5, 170 of them will be "premium" models that feature full interior modeling that is affected by vehicle damage. The remaining 830 vehicles will be standard models that only feature external damage. Check the video below to see a Subaru Impreza STI rally car getting its door literally blown off.
There's a rumor that the new physics engine will also allow for vehicle rollover, which should put GT5 back on a level playing field with Forza 3 for crash realism and there are rumblings that the cockpit camera can use the PS Eye peripheral to track your head.