Dude, car manufactures do NOT like to see their cars being smashed up in videogames. Its because they believe that people playing these games will percieve their cars to not be safe, or, if you total your car on a 90 degree corner in a videogame, they think this will affect sales.
Its, of course, non sense, but its still the main factor as to why there arent many games with damage models. Its not that the PS2 can\'t do it, its just most developers arent allowed too.