Couldn't you technically make it where cities are destructible? For instance, adding faction/House wars, politics, and Destructible cities to give off a realistic and more brutal environment? Is this possible?

With a lot of modeling work and/or unstable scripts (if you want real time) yes.

Lots and lots of both.

Well, it just made me wonder because of the end of the Morrowind Main Quest, with the statue-crumble script. That's why.

Take a look at raven rock. Everything is a unique activator object with a script in it that tells it when to appear or disappear. Something like a war that damages a city would probably call for dialogue changes as well so that the people in the city aren't oblivious.

Yeah, That is something I would assume as well. We don't want citizens walking around saying something like, "Isn't this place beautiful, greatest city in the world it is, it's sooo peaceful here!" And when you look around all you see is destruction and death. O___O

This. Same happens with mods such as Building Up Uvirith's Grave, Uvirith's Legacy (Zaripahel construction), Archipel de Pertevue (a whole city you can build) and so on. I'd love to see a quest mod built upon this concept, IIRC the guy who made the mods "Castle Wars" planned to do something similar (adapting his mod to feature battles between the three Houses).

I use disable and enable scripts in Keening to change the characters and location slightly as things progress, and even the smallest application of this is extremely rewarding as a modder. Probably because it is so very rare in Morrowind.... a little more common as the Beths gained more experience, leading up to Raven Rock. But, it would be nice to see this idea used more frequently, even if not just for destroying or building structures. A more realistic ambition might be to have more subtle changes occur in the great house locations... help the house, maybe some of its members get better clothing.... hurt the house and maybe some small changes might occur. Of course, don't let me discourage you from blowing up buildings.

Oh indeed; Although, I am afraid I know little to nothing about Scripting and all of though who-ha! lol. I am still honing my texturing and modelling skills before I try and learn something that I will have difficulty in. hahaha

I don't know scripting either, but all I have to do in the scripts is change the name of the script to make a new script and then change the applicable journal entry referenced in the script, then attach it to a unique object or npc. If you get to the point where you want to do it, pm me and I'll toss you the two scripts that abot gave me. Abot is like the friendly wizard and scripts are like spells, and I have a few scripts in my spellbook. Just a few, though.

It's an animation, actually; no script at all. You can see it in the CS.

While enabling and disabling activators like in Raven Rock and such would be the easiest way, it might look a bit odd or gimmicky if you are right in front of them, depending on what you want to do. For a burning shack, for instance, you'd have to do a lot of model swapping for a smooth transition. If you were to animate the destruction, it could look much better, and you could do more things, like blowing out chunks of stairs and having the chunk fly away without a complicated script.