Chaos Destruction for Skeletal Meshes could be useful for things like slicing a goblin’s head or arm off and seeing the bloody tissue underneath become exposed. Then the blood spurt can be simulated using ray marching or other liquid simulation. This would make sword based game play much more realistic and immersive.
There was a 3D barbarian action RPG released for the Geforce 256 about 21 years ago that I can’t remember the name of but it made an impression on me with its dismemberment actions.