Has anyone put much thought towards havoking conscious actors?
Yes, but their head exploded.
The problem is that when a weapon hits, then the physics would alter the animation at that point for both the hitter and the victim. The animation engine would have to be able to adjust the swing of a sword to decide whether to bounce it off a shield or slice into flesh, and take into consideration the varied momentum of the wielding arm in different armor weights with different weapons on the resulting movement of the person just hit. Not an easy job. So the sword swings through the target if it's not a rigid object, because that's easier to do.
Even for the rigid targets, there are only two situations. The immovable object case (statics) where the weapon bounces off, or the moveable clutter where the weapon swings, and the item goes flying.(rate depending on mass etc) but the weapon is unaffected is if it hit nothing. In both cases the attack animation plays unchanged, so swords swing through solid walls etc. In both cases the attack animation is unaffected so sword swing through solid walls.