In the GameJam video things, there was a demonstration of Verlet Surfaces for non-rigid objects (that allows things like branches to bend and ball & chain weapons).
If you ask me, this should've been in the released game.
There's some content in Dawnguard that uses verlet surfaces. Not to the extent seen in gamejam, like bendable trees and flails, but it's used for some stuff. Patch 1.6 technically adds support for it, Dawnguard just utilizes the functionality.
Yeah, the game should've used them from the start anyway for the capes and robes :/ Stupid 11/11/11 deadline.