I always thought that "Red Faction" was a rip-off of the "Half-Life" games. Even then, I thought the 'destructive terrain' thing was kind of cool for combat purposes as it means that some cover you or your enemies were relying on could be reduced to open gaps similar to the barricades in a "Space Invaders" game. There was one point I remember where I was having a gun battle with a bunch of guards on a cat-walk at the beginning and, somehow, a hole emerged through the cat-walk which allowed either the enemies (or more possibly) me to throw grenades down.
Even then, I doubt you could actually dig to the exit in the first "Red Faction" game as I recall that the only weapon which can do such a thing in the beginning was this rocket launcher-like weapon, but had limited ammo.
Though I doubt the destructive terrain served much in combat in the first game...Its been years since I played it and even then, it didn't really innovate anything.
Good comments on the "Wii Sports" game, though I'm a bit confused on the argument that this is not so 'immersive'.