Not to nit pick but shouldn't that either have burn't up or be a flat pancake on the floor ?
Burning in the atmosphere can be done, its just a case of attaching particle emitters all around the bodywork but the problem then comes how do you tell which emitters to fire and when, its a complication because its constantly moving about.
Squishing, that would be difficult, in order for the bodywork to react to gravity it needs to be physicalized, there are two kinds of physics, Soft Body Physics and Ridged Body Physics, Soft Body Physics makes the object malleable, like a blanket flaping in the wind and reacting to shooting, the ships have Ridged Body Physics so they are solid objects with weight but they are not malleable, what you could do is build the ship with lots Ridged Body Physics components and tell them to break apart when impacted with something, like what i did in the video below, but then how do you tell it the difference between it colliding with another ship, or landing and slamming into a moon surface?
Soft Body Physics would make the ship be all wibbly wobbly.....
Multiple Ridged Body Physics as explained.
The Grass, the Tree, the curtain... in this are Soft Body Physics, they move and deform when hit with something, like bullets and the air pressure from the gun.
The light in the Hut is more interesting, what i did there was Ridged Body Physicalize the lamp and attach it to a Soft Body cable, so it swings about on it, you can even cut the cable by shooting at it.