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A sandbox, but with realistic in-world physics and ability to do anything.
Wanna burner? Boom, take this tin can, make some holes, put in alcohol and burn. Wanna learn how telephone works? Construct it yourself! Game should simulate real-world physics and just store properties of various objects and materials, allowing you to completely unbound from game mechanics and developer's intention. Maybe you'd literally be able to conduct scientific experiments in game, and this would be a great in silico model. Maybe you'd be able to understand how things around you work. Maybe you'd be able to reverse engineer other player's creations. Possibilities are endless, you're having an entire world in your pocket.
...but yeah, we'd barely have enough developers and computer resources for that.
When it comes to electronics/computing, you should see what some geniuses have done in minecraft with redstone.Redstone. People have made functioning rudimentary computers in it, really interesting if you want to understand the basics of how a computer functions.
Some of the same tricks have been pulled with Factorio. I wouldn't even know where to start.
Yep, that stuff is impressive, and back in the day I had quite some fun with those redstone creations.
You're describing gmod, if the engine wasn't... Well, like it is.
I kinda want to go way beyond what gmod offers, adding properties to every material and rendering players able to do whatever they want with it. There shouldn't be a scripted "balloon". There should be a property of latex to expand without breaking up to a certain degree, and there should be gas pressure physics to calculate how much does this latex expand. And then if that's, say, helium, calculate the upward momentum of it based on air pressure, and the weight of piece of latex, and also calculate if there are any leakages. That sort of thing.
So a holodeck, then.
More or less :D