it most likeley will
but i font know if you would be able to blow up houses
Probably not. Since there are no firearms in this game
But I do believe/hope that if you strike the house with your sword/hammer really hard it will make a "bruise" or a mark.
I hope this destructable environment technology is applied to trees...
We know woodcutting is in the game so... perhaps you can truly (realistically) chop down trees now?
Interactable objects is most likely the most relevant thing for Skyrim. We know we'll have some kind of "force" dragon shout. So that might be pretty good. Much more realistic if a "force spell" actually moves object... heh.
Only a few objects will most likely be fully destructable, such as crates, barrels, etc.
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Just because destructive environments is in a game doesn't mean you can blow up houses or smash stone forts into pieces