Soft body physics have been discussed A LOT. Its not happening any time soon.
The physics will be updated some-when....
Really any physics updates would do wonders for this game...
... lets see what the black-box brings. Also, it already has bullet, only objects imported dont have any physical characteristics (mass, etc.) to be used and there is no simulation mode for them. (their just static render objects) I think, when those things will be applied properly in-game and some destruction mechanisms for materials get some open hand, all will see some heavy change here, just like vehicles and importer were. Maybe there is also a thing about blending simulations together - ya know, aircraft's and other vehicles are on a different simulation, where interactions have to be yet defined between them ( also to objects later ). But i think, if the environmental properties have to do their part in affecting physics, they do well in getting that part sorted out first - can imagine how mixing dev. of both at the same time could get a little messy, or problematic.
