1)Pixar unveiling their methods for cloth dynamics at this summers Siggraph.
2)The generation of sound by calculating the physics between the objects that would create them.
3)Physics based explosions. As opposed to hand animated particles.
Kind of interesting. I really like the sound idea... they mention that the video game industry could benefit the most from this tech, and it's predicted that the processor hit will be very minimal only adding 1% more processor power per frame.