I don't know how complex the computations are, but if it's close to the computing required by standard loose-accuracy water fluid simulation, we could certainly

I don't know how complex the computations are, but if it's close to the computing required by standard loose-accuracy water fluid simulation, we could certainly see it in-game, definitely possible even for this gen of consoles. I speculate as water simulations is quite doable even on 5 year old hardware, though tends to be inaccurate. I remember seeing some Nvidia demos showcases things like softbody destruction and collisions a few years back too, so that also could translate. There are also some really rough tessellation techniques in use to simulate ground snow walking in games out now, like that Assassins Creed with the native americans.