That's actually a very cool system, one of the things I really like about SC.
Elite was supposed to have something similar. All we have though is some parts of Anaconda bend when it's badly damaged. That's it.
This kind of stuff is cool, but it's cool when all the other important things are in place.
Honestly, I'd rather 10 years with a well worked damage system in the modules, even if they have no graphical representation, than 10 years without a half-decent damage system in a game in eternal alpha.
There are many, many, many, many, many things in SC "theory" that are really cool. Unfortunately CIG hasn't been able to translate them from theory to practice, even after promising and selling them for years.
For me, that's just "one of the things I really hate about SC"; a lot of promises that made us dream and invest a lot of money, and 10 years later nothing at all. I get rich with lies too... so let's stop with the lies and focus on the realities, even if graphically they may be less cool.
That's why, when I see an ISC type video like that, promising cool stuff again with cool graphics, it makes me more disgusted than happy. But that's just me, I'm not very tolerant...