It'd be great but to do it in that kind of detail, you'd need more CPU and GPU power than the current-gen consoles have on offer. It's one thing to show two cars wrecking on their own on a blank canvas. It's another to have dozens of cars reacting in an active simulation.
XBL Gamertag: JWRebholz
PSN ID: jwrebholz
...No, I'm not very creative when it comes to this sort of thing.