I find myself anticipating the release of PhysX 3...and wonder if the features below are on the cards?
Details weren't revealed to public yet - release date, features, compability, etc.
All I can say, SDK 3.0 is almost complete rewrite of current PhysX SDK
universal finite element fracture model for rigid/deformable bodies
All destruction/fracturing stuff in PhysX SDK will be based on APEX Destruction
Talk from latest GDC 2010 "Authoring Physically Simulated Destruction with NVIDIA APEX"
gives a good glimpse on current state of APEX D.
Video record is available at GDCVault
- just search for "apex"
As for FEM fracturing, it isn't supported yet, but at the and of the session they added that some king of "stress system" is in to-do list