Uh, Rampage had destructible environments.... (har har). So does War of the Monsters for that matter, and Zone of the Enders (to some degree). It plays a really large role in MechAssault as well (destroying buildings used for cover, bridges, ice-covered lakes that mechs get stuck in if the ice breaks, etc.).
Seems like Red Faction I/II tried to do something useful with it, which is a step forweward (it's just eye-candy in most games). Level design can be an issue too, as was mentioned before, because it would be hard to design something if it all can just be leveled. The bridges in WarCraft III used to be destroyable, but, it messed up the balance on some maps, so they had to take it out.



and if you like that, then Minority Report is your beconing haven.


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