i think of water as more of an asthetic and interesting luxury rather than a necessity, but eh, id still like it. too bloody complex though.
anyway, clone of fortune?

www.tou.has.it

Its a cave-flyer game, but it has destructable terrain and demonstrates how would water work in a 2d game nicely. Flowing and static, varies on map.

Boy, that games graphics look like something I could pull out of my butt.
Oh well, proof of concept.

Awesome.

A little more difficult with the pixel physics CC has, TOU seems to just be standard destructible terrain. Still, that game proves that it would be doable, which is awesome. Now the question is, does Data care enough?

Well, maybe in a distant future build, certainly no rush. There are a lot of other things that are first and foremost in Cortex Command development, like more Lua functions and a more flexible interface. But at least TOU is a nice working example of it being feasible. Data, get in contact with the guys who made TOU! I bet they'd be more than happy to talk to you about how they did what they did, which could be helpful.