The update on the physics was a

The fact that the player's wound animations/textures are the same as NPC's damage textures.
I died during a mission due to bring shoot in the face from far by an enemy. Now see, when you die in MP3 it does a little "comic book type" frame-by-frame of your death in slow motion to show you where you got shot, so when I got shot in the face
it was a shock to see a gaping bullet-hole in my forehead with a meaty exit wound in the back of my skull. Made feel like "WHAT!!!! Why did i....DAMN!!! Yea.... I see why I died". Also his wounds seem to hinder him somewhat depending on location to.
And this is all story mode...