yes Alf commented on the "tree situation" as it were in his interview. Its not an easy one and I imagine it depends on all kinds of things. It may well be something
MA will just have to try out and see how performance goes.
There all sorts of things like that in the cryengine though. eg that when you shoot the branches of plants/trees they move as if hit. Similarly they brush past you as you walk around.
so what would the guy standing behind you see?
Tricky problem really. I like the idea of a respawn though to be honest.