Hey hoveeagle, I have made a bit of progress, but not too exciting.
By attaching the InstancedStaticMesh to a StaticMesh, we can give the instanced static mesh gravity, but it doesn’t seem to collide with things properly. (as if the InstancedStaticMesh gets its collision+physics from the parent StaticMesh and has no weight)
If you would like, we could work on this together because we have the same goal.
My discord: