The graphical aspect of a "damage model" is pretty much separate from the actual damage modeling itself. To model damage properly, you'd have to study the systems of an F-16 very carefully from a -1 manual or something and then program in realistic fault behavior patterns. This is the kind of simulator that pilots train on all the time before getting in the real jet. They get into the simulator and get various faults on top of faults thrown at them at worst possible times like take-off, landing, and so forth.
While I'm sure there's a good flight model and maybe even a 360° dome to display graphics in some simulators, I think they're still used primarily for "procedural" training. For example, you might use the simulator to practice your
HOTAS and switchology skills during dogfights, but probably not so much for BFM training itself. You'll want to actually go up in the jet and experience the disorienting forces and sensations associated with combat maneuvers. When you do go up in the jet to practice that aspect of combat though, you want everything else to be second nature. That's what military grade simulators are for.
Falcon 4 is concerned with simulating every aspect of fighter combat from the war outside your jet to tiny details inside your jet. You might get everything you ever wanted for a PC combat flight simulation given 20 or so years of consistent development on a single product. That's assuming you have a relatively small coding team which is generally the case for PC sims. To just add a detailed damage model to Falcon 4 right now would take a small team of experienced coders several months I'm guessing. That's JUST working on the damage model full time. Forget about focusing on anything else. It might take longer... I'm not really sure. It depends on the level of experience the coders have with this type of fault modeling.
-Raptor